Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the same rate regardless of income, why might this be so?

Q: What are government transfer payments? Are they included as part of the government spending…

A: In an economy, all the economic activities performed by the citizens that resulted in income value…

Q: In what situation can property tax become a regressive tax? When the property owner starts living on…

A: Given the question is  In what situation can property tax become a regressive tax.  When the…

Q: What is direct tax and indirect tax? Give example. How does taxation helps in fiscal development?

A: Direct Tax A direct tax, to put it simply, is one which you pay to the taxing authority directly.…

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

A: The tax is the unilateral payment made by the people towards the government for various purposes…

Q: (1) Tax system contributes to reduce inequality and control consumption-Explain in your own words.

A: Government levies taxes on consumers to generate resources to provide public goods like defence,…

Q: Government spending is divided into all of the following categories, except: A) welfare spending B)…

A: Government spending or expenditure includes all government consumption, investment, and transfer…

Q: Tax rates for higher income group have been increased. Which Economic value does it reflect? Explain

A: # One of the biggest problem in the path of economic growth of a country is the unequal distribution…

Q: Suppose that Alberta imposes a sales tax of 10 percent on all goods and services. An Albertan named…

A: Given the price of blower = $200 Sales tax = 10% Price after sales tax = $220

Q: How would you describe the relationship between corporate taxes and the GDP of a country?

A: In an economy, the corporate tax refers to the tax imposed by the government on the income of…

Q: If the government got rid of sales tax, how might this affect the market? shift AD to the right…

A: When the government rid of sales tax, then the price of the goods decreases. Decreasing price leads…

Q: Government spending (as a percentage of gross domestic expenditure) has increased significantly over…

A: Government spending has increased significantly over the past decades due to following reasons:…

Q: DEFINE FISCAL POLICY. WOULD THE INCREASE OF $100 IN GOVERNMENT SPENDING HAVE THE SAME EFFECT ON GDP…

A: Fiscal policy is known as stabilizing policy in which government changes government spending or…

Q: 1. This kind of tax is derived from the individuals, corporate estates, and trusts income. A.…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: What is the difference between government expendituresand government purchases?

A: Government payment is that the quantity of cash spent by the govt on buying merchandise and…

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: what happen to the country if the government income decrease?

A: Tax is one of the significant sources of income for the public authority to do its work. Tax income…

Q: In an economy where people spend 80% of their incomes, the government lowers taxes by $5000.…

A: Gross domestic product is a monetary measure of the market value of all the services and final goods…

Q: Describe some fiscal policies that governments are presently using to counter the impact of…

A: The fiscal policy is used by the government or the finance ministry of the country to regulate the…

Q: Which of the following statements illustrate a regressive tax? Tom gets a new job and his income…

A: A regressive tax is mainly applied in a manner that the tax rate decreases as the total taxable…

Q: How does government spending act as an injection into the circular flow of income?

A: Government spending is the spending by the government on the welfare of the public or on the public…

Q: Which of the following programs are often funded by the payroll tax? Check all that apply. A.…

A: Introduction: Payroll tax is the tax that is withheld, assessed, or imposed on an employer's…

Q: What is the best policy to implement with regard to taxes?

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: What is the difference between indirect taxes and net indirect taxes? Macro economics

A: Taxation: - Taxation is the imposition of some charges by the government of a country on the…

Q: Choose... Choose.. Decrease in government expenditure Increase government expenditure Decrease in…

A: Fiscal policy involves the use of tax and government spending to influence the economy. Autonomous…

Q: What is the distinction between government purchases and transfer payments? What is the relative…

A: If we consider the gross domestic product (GDP)  formula then it can be written as: GDP =…

Q: Which of the following is incorrect regarding tax revenues? a.they increase during recessions…

A: The correct solution is option a.

Q: Which of the following sequence of events follows a decrease in net taxes? A) AD↑ = Y↑ = MDĮ = r\.…

A: Decrease in net taxes happens with the increase in disposable income which will bring a rise in the…

Q: how are consumption taxes different from income and property taxes?

A: Taxes are compulsory payments to governments without expectation of direct return or benefit to the…

Q: For the U.S. government, which of the given is NOT an example of discretionary spending? defense…

A: Answer is Medicare. Medicare spending is not an example of discretionary spending and it does not…

Q: How I measure NDP?

A: NDP stands for Net Domestic product, which measures the market value of all final goods and services…

Q: Do tax cuts increase economic growth and taxable income so much that tax revenue increases?

A: Tax cuts are the fall in the amount of money of the taxpayers which are added to the revenue of the…

Q: How do the top two categories of federal employment differ from the top two categories of local and…

A: Government jobs can provide both financial and job security while giving a sense of honor of working…

Q: How do you calaculate the debt to GDP ratio?

A: Debt to GDP ratio refers to the calculation that calculates the nation’s government debt to the GDP.

Q: The following national income model, the effect of changing direct taxes on equilibrium income is Y…

A:

Q: Sales taxes tend to be regressive, that is why food, medicine are often excluded? True or False

A: The tax is a unilateral payment made by the people towards the government for various purposes such…

Q: Do all these taxes and licenses reduce our disposable income?     Why do we sacrifice and pay…

A: Disposable Income: The amount of money that an individual spends on consumption and savings after…

Q: The impact of an increase in government spending would be to a) increase the interest rate b) leave…

A: Government spending is spending on infrastructure, roads and highways, national defense and…