c. Does the tax-spending system in the United States redistribute resources from higher-income earners to lower-income earners?O Yes, because the tax-spending system in the United States is proportional.O Yes, because the tax-spending system in the United States is progressive.O No, because the tax system is regressive and the tax-spending system is progressive.O No, because the tax system is progressive and the tax-spending system is regressive.

A progressive tax refers to a tax in which the tax rate increases as the taxable amount rises, thus…

Answered: c. Does the tax-spending system in the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 19 Which of these is NOT a component of the 2016 Social Security reform proposal by Democratic lawmakers? O a. an increase in minimum benefits to 25% above the poverty line b. an increase in benefits by 2% for all recipients O c. a more generous cost-of-living adjustment O d. lower payroll taxes
plz answer correct
Special interest groups tend to be able to infil hce legis O a. special interest groups have rational ignorance. O b. voters have an incentive to oppose the legislation. O c. the costs for voters opposing the legislation are higher than the benefits. O d. special interest groups have an incentive to educate voters.
2
QUESTION 10 Using the attached table, once the tax is implemented, the tax revenue will be be Quantity MB 520 525 530 535 540 545 550 164 160 156 152 148 144 140 136 MC 80 90 100 110 120 130 140 555 150 Note: MB designates the marginal benefit and reflects the values on the demand curve. MC is the marginal cost and designates the values on the supply curve. O $18,375, $1,750 $70, $35 O $36,750, $875 O $525, $1,750 MB-Tax (Amount producer receives) 94 90 86 and the deadweight loss will 82 78 74 70 66
Suppose that a country has 20 million households. Ten million are poor households that each have labor market earnings of $20,000 per year and 10 million are rich households that each have labor market earnings of $80,000 per year. If the government enacted a marginal tax of 10 percent on all labor market earnings above $20,000 and transferred this money to households earning $20,000 or less, would the incomes of the poor rise by $8,000 per year? O A. No. Workers in rich and poor households would work less because of the marginal tax. O B. Yes. 10% of $80,000 is $8,000; therefore, $8,000 from each rich household would be transferred to each poor household. O C. There is not enough information to determine household behavior in this case. O D. No. Only workers in rich households would work less because of the marginal tax.
A proportional tax, sometimes referred to as a flat tax, is a kind of income tax wherein all taxpayers are taxed at the same percentage rate, no matter how high or low their income. A proportional tax system means that everyone experiences the same tax rate, whether low, middle, or high-income. Those who support a proportional tax argue that the system is fairest because the rules are simple and straightforward and no one is exempt; however, there is a huge con of proprtional taxes. Explain what that is. Essay
1
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Consider the effects of two taxes: lump-sum tax and a price distorting tax. Consider a consumer. Let the price of good X be Px, and the price of good Y be Py = 1. In the figure below. The budget line Lo of the consumer is the before-tax budget line. In the figure below, A, B, C, D, and E are some unknown numbers. E D L2 Uo U2 Lo A 1. Using A, B, C, D, and E, answer the value of the income of the consumer.
Which payroll tax is imposed on both the employee and the employer? O a. federal unemployment tax b. state unemployment tax O c. federal income tax Od. FICA tax
Suppose the government incurs more debt to finance new military spending. To what extent will this impose a burden on future generations? O a. Government spending on military is considered investment expenditure. O b. Military spending does not at all benefit the future generations. O c. Government spending crowds out private investment spending. O d. Government debt needed to finance military expenditures is held by domestic entities.

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