In order to construct a more complete picture of the economic burden of government across income classes,what do economists usually do
A)include both tax payments and transfer payments received
B)focus only on the tax payments of wealthy taxpayers
C)limit their analysis to taxes based on the ability-to-pay principle
D)focus their analysis on issues of tax efficiency

Question

Quizplus · Accepted Answer

Economists usually include both tax payments and transfer payments received in order to construct a more complete picture of the economic burden of government across income classes. This allows them to understand the net impact of government policy on different income groups, taking into account both taxation and government transfers. Focusing only on tax payments of wealthy taxpayers (B) or limiting the analysis to taxes based on the ability-to-pay principle (C) would provide a more limited view of government's economic impact. Similarly, focusing only on tax efficiency (D) would miss important distributional effects of government policy.

In Order to Construct a More Complete Picture of the Economic