Senator Jackson Argues That Replacing the Federal Income Tax with a National
Senator Jackson argues that replacing the federal income tax with a national sales tax would increase the level of output.Senator Feldman objects that this policy would benefit the rich at the expense of the poor.
A)Both senators' arguments are primarily about equality.
B)Both senators' arguments are primarily about efficiency.
C)Senator Jackson's argument is primarily about equality,while Senator Feldman's argument is primarily about efficiency.
D)Senator Jackson's argument is primarily about efficiency,while Senator Feldman's argument is primarily about equality.
Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor.This redistribution of wealth
A)is more efficient and more equal for society.
B)is more efficient but less equal for society.
C)is more equal but less efficient for society.
D)is less equal and less efficient for society.
The government has just passed a law requiring that all residents earn the same annual income regardless of work effort.This law is likely to
A)increase efficiency and increase equality.
B)increase efficiency but decrease equality.
C)decrease efficiency but increase equality.
D)decrease efficiency and decrease equality.
The opportunity cost of an item is
A)the number of hours needed to earn money to buy the item.
B)what you give up to get that item.
C)usually less than the dollar value of the item.
D)the dollar value of the item.