Why do some economists advocate taxing consumption rather than income?

Q: Y= C+I+G Where C = 160 +0.6Yp I = 150 G = 150 T= 100

A: When the policymakers compute the real GDP by expenditure methods, they include consumption,…

Q: Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go…

A: Arthur Laffer is the economist who explain the relationship between tax rates and the revenue…

Q: following is not regarded as part of fiscal policy Select one: a. Increased taxation b. Decreased…

A: Fiscal policy is a policy through which a government, in turn, adjusts its rates of taxation and…

Q: The idea that people in equal conditions should pay equal taxes is referred to as Group of answer…

A: The term “tax” is defined as the compulsory payment made by the individuals of the country to either…

Q: Taxes are a burden and an obligation and people have a negative attitude towards their tax…

A: Taxes are levies levied by the government on residents' incomes, products, and other assets, which…

Q: Assume that the federal government replaces the federal income tax with a national sales tax on all…

A: A federal income tax is the tax system where the incomes of individuals, firms, other companies are…

Q: In what ways did the conservative revolution of the 1980s and 1990s fail in its promise of tax cuts…

A: As economies emerged, economic agents increased their demand for goods and services. Production of…

Q: Which is wrong? EXPLAIN   a. The government should tax itself. b. The government can tax itself. c.…

A: In an economy, government is the highest ruling authority that runs the economy based on its…

Q: Which of the following is a significant revenue source for state and local governments, but not the…

A: Taxes are the amount charged by the government for the services provided and are the means of…

Q: If GDPMP of a country is 50 billion and product taxes are 2 billion while subsidies given are worth…

A: The gross domestic product (GDP) is the money or market value of all the finished goods and services…

Q: When the government levies a tax on a good, who actually bears the burden of the tax? The people…

A: When the tax is levied on the buyers, like the tax levied on the consumption of goods and services…

Q: Do you think profit could be maintained if the tax burden were simply passed on to the consumers in…

A: The division of a tax burden across stakeholders, such as buyers and sellers, and producers and…

Q: If the equilibrium GDP is 4000 billion, full employment GDP is 5000 billion, marginal prosperity to…

A: Marginal propensity to consume (MPC) = 0.80Spending multiplier = 1(1-MPC) = 1(1-0.80) = 10.2 =5…

Q: policy?

A: Resource allocation is the process of managing and assigning of assets in a manner which supports…

Q: xplain the benefits principle and the ability-to-pay principle. What are vertical eguity and…

A: Microeconomics is the study of how people and businesses allocate resources and set prices for…

Q: When the government spends more than it collects in taxes, it can do this by? a. financing the…

A: Government spending is the sum of government purchases and transfer payments. Government spending…

Q: With a tax on demand (if demand is downward-sloping as it usually is) , the price that buyers pay…

A: A downward sloping demand curve indicate an inverse relationship between price and quantity, that…

Q: 23)Which of the following is classified as Fiscal Policy? Select one: a. The federal government…

A: 23.Answer is (a) Tax cut is an example of fiscal policy.To decrease air pollution,federal government…

Q: True or False (and explain your answer) : The George W. Bush tax cuts​ (circa 2001) were touted by…

A: We are going to use median and average properties to answer this question.

Q: axation can promote good social policy while minimizing economic inefficiency. True False

A: Economic inefficiency can be termed in the reference of externalities. In the presence of…

Q: Read the following and answer question? ‘Exit tax’ to hit South Africans looking to emigrate from…

A: *Answer:  Keynesian economics propose government intervention when there is a positive or negative…

Q: As government keep raising tax rate (t) on buyers, government will continually collect higher tax…

A: The government influences the amount of discretionary income available to households by raising or…

Q: A law is passed requiring owners of real property in Thailand to pay real property tax in the…

A: A law is passed requiring owners of real property in Thailand to pay real property tax in the…

Q: Suppose that the government wants to tax wealthy people. They notice that only wealthy people buy…

A: The given tax on Yachts is an example of a luxury tax. A luxury tax is a tax that is imposed on the…

Q: What will happen to the amount of taxes collected by the government during a recession when there is…

A: please find the answer below.

Q: Explain why the ideals of tax efficiency and tax equity are problematic in many emerging countries.

A: Governments use taxation to collect revenue from individuals and businesses based on income, wealth,…

Q: What does crowding out in education refer to? a.The government spending money on education reduces…

A: Crowding out effect refers to the situation where the availability of fund for he private investment…

Q: Average Tax Rate Tax Revenue ($B) 20% $250 40 300 60 250 80 200     Refer to the table. If the…

A: Given that the current tax rate is 60%, the tax revenue is $250. In order to increase the revenue,…

Q: Which of the following statement is true about tax? A. The burden shared by consumers and producers…

A: Answer: Correct option: option (D) Explanation: When a tax is levied either on the buyer or seller,…

Q: Q)Economics If the tax elasticity of supply is 0.16, by how much will the quantity supplied increase…

A: The tax elasticity of supply  (T.Es) demonstrates the effect of a change in marginal tax rate on the…

Q: Which of the following sources of revenue is used to fund government spending? A) corporate…

A: Government expenditure is the amount of money allocated by the public sector for the acquisition of…

Q: d. Given C and I above, if government increases both G and T by 30, calculate equilibrium Y. e.…

A: We use the following formula, Income = Aggregate expenditure Y = C + I + G

Q: Discuss how governments can use fiscal policy to address TWO costs of unemployment.

A: Answer: The TWO costs of unemployment are given below: (1). Loss of output or goods and services:…

Q: Q.1. A budget deficit occurs when:  (a) there is an increase in taxation. (b) government spends less…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What happens to the tax revenue when the tax on a good increase gradually? (a) Will rise (b) Will…

A: ‘Deadweight Loss(DWL)’ can be defined as a cost that is created to society due to any kind of market…

Q: Discuss whether supply-side policies have been successful in improving the performance of an economy…

A: Supply- side policy:- These policies are attempts of government in order to enhance the productivity…

Q: On average, does an increase in taxes raise or lower real GDP? If taxes as a percent of GDP go up 1…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for…

Q: According to the textbook, which of the following statements is (are) correct? (x) As a nation gets…

A: The answer is - (x) only

Q: Because workers tend to work more when their after-tax wage increases, the government can increase…

A: When the workers have to pay more taxes on their wages then they try to earn because their in-hand…

Q: Most economists have reached the following conclusion about supply-side economics.   Supply-side…

A: Supply-side economics is an economic theory that postulates tax cuts for the wealthy result in…

Q: Suppose the government increases spending on public education by $700 million and individual…

A: Government spending is the total amount spend on the public sector to acquire the products and…