Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971509
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 23, Problem 7PA
Subpart (a):
To determine
Redistribution of income.
Subpart (b):
To determine
Redistribution of income.
Subpart (c):
To determine
Redistribution of income.
Subpart (d):
To determine
Redistribution of income.
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Students have asked these similar questions
If Oman government redistributes income from the rich to the poor, explain how this action affects equity as well as efficiency in the economy
Which of the following is most likely to make a country’s income distribution more equal?
a. Establishing a national sales tax on food and clothing
b. Establishing a progressive income tax system
c. Eliminating excise taxes on luxury goods
d. Proportionally decreasing the tax rate for all income groups
e. Reducing the subsidy to education
Demonstrate how the distribution of income
between rich and poor is affected by
government taxes, transfers and spending.
Chapter 23 Solutions
Principles of Macroeconomics (MindTap Course List)
Ch. 23.1 - Prob. 1QQCh. 23.2 - Prob. 2QQCh. 23.3 - Prob. 3QQCh. 23.4 - Prob. 4QQCh. 23.5 - Prob. 5QQCh. 23.6 - Prob. 6QQCh. 23 - Prob. 1CQQCh. 23 - Prob. 2CQQCh. 23 - Prob. 3CQQCh. 23 - Prob. 4CQQ
Ch. 23 - Prob. 5CQQCh. 23 - Prob. 6CQQCh. 23 - Prob. 1QRCh. 23 - Prob. 2QRCh. 23 - Prob. 3QRCh. 23 - Prob. 4QRCh. 23 - Prob. 5QRCh. 23 - Prob. 6QRCh. 23 - Prob. 7QRCh. 23 - Prob. 8QRCh. 23 - Prob. 9QRCh. 23 - Prob. 10QRCh. 23 - Prob. 1PACh. 23 - Prob. 2PACh. 23 - Prob. 3PACh. 23 - Prob. 4PACh. 23 - Prob. 5PACh. 23 - Prob. 6PACh. 23 - Prob. 7PACh. 23 - Prob. 8PA
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- Which of the following will most likely lead to a more equal distribution of income? a. More regressive national sales tax b. More progressive income taxes c. An increase in the high school dropout rate d. An increase in structural unemployment e. An increase in earnings for owners of capitalarrow_forwardThe Lorenz curve is used to show which of the following? a. The total income generated from all activities b. The degree of inequality in the distribution of income within a country c. The progressivity of the income-tax structure within a country d. The extent of wage differences among workers in similar occupations e. The change in the poverty rate within a country over timearrow_forwardFrom comparisons of income distribution studies over time, it generally appears that A. income is more evenly distributed in the richer nations. B. there are few variations in income distribution among developed and developing nations. C. comparisons over time demonstrate that income redistribution changes relatively quickly, so older data have limited value. D. the middle quintiles in most nations are growing at the expense of the bottom 20 percent. E. income inequality decreases in the early stages of development and reverses in the later stages.arrow_forward
- Answer the questions based on the data in the table. Round all answers to two places after the decimal. Earner Annual income amount Income tax amount $30722.67 Sally $93099.00 Steve $163101.00 $47299.29 $233103,00 Jamie $58275.75 $303105.00 Pat $72745.20 What is Sally's tax rate? What is Pat's tax rate?arrow_forwardPolicy Perspectives Refer to the table to answer one question. Income Transfers: The market mechanism might leave some people with too little income and others with too much. The government uses taxes and transfers to redistribute income more fairly. Program Recipient Group Number of Recipients Value of Transfers Social Security Retired and disabled 67 million $1,002 billion workers Medicare Individuals over age 65 59 million $620 billion Medicaid Medically needy 75 million $400 billion individuals Unemployment compensation Unemployed workers 6 million $30 billion Food stamps Low-income 42 million households $63 billion Eamed Income Tax Credit Low-wage workers 30 million $70 billion Temporary Aid to Needy Families Poor families 3 million $17 billionarrow_forwardOffer one reason why income inequality might increase productivity and efficiency in an economy. Offer one reason why income inequality might reduce productivity and efficiency in an economy. Explain your answers.arrow_forward
- One tradeoff society faces is between efficiency and equity. Define each term. If Oman government redistributes income from the rich to the poor, explain how this action affects equity as well as efficiency in the economy.arrow_forwardHow to redistribute income to reduce poverty, without causing loss of economic incentives.arrow_forwardInequality, Social Insurance, and Redistribution End of Chapter Problem Discussions of inequality often focus on annual income inequality. a. From the list below, select the measure(s) that are measures of inequality. Wealth ✔Intergenerational mobility Spending Permanent income b. Why is it important to consider more than just annual income when assessing inequality? Illegal activities skew GDP and GNP, and this impacts citizens' incomes. Living standards and the quality of life encompass more than just current income. Imports and exports should also be counted to get a full picture or earnings. The poverty rate is based on diminishing marginal utility, which depends on more than income.arrow_forward
- WHAT ARE SOME POLICIES THAT A GOVERNMENT CAN IMPLEMENT TO REDUCE INCOME INEQUALITY? SELECT ALL THAT APPLY A. Increase spending in education. B. Lower tax for the top quintile. C. Stregnthen anti-discrimination laws based on race, gender, sexual orientation, marital status, religion, and disability status. D. Increase access to affordable healthcare to all. E. Encourage corporate stock ownership.arrow_forwardWhich of the following is an example of a positive economic statement? a.The government should not be involved in the income redistribution schemes. b.The after-tax distribution of income is more equal than the pre-tax distribution of income. c.The distribution of income in the United States should be more equal. d.The tax system should be more progressive so that the after-tax distribution of income can be more equal.arrow_forward1. Describe how each of these changes is likely to affect poverty and inequality: a. Incomes rise for low-income and high-income workers, but rise more for the high-income earners b. Incomes fall for low-income and high-income workers, but fall more for high-income earners. 2. Based on the theory of rational ignorance, what should we expect to happen to voter turnout as the Internet makes information easier to obtain? 3. What is the cost of voting in an election? 4. What is the main factor preventing a large community from influencing policy in the same way as a special interest group? 5. How does the TANF attempt to loosen the poverty trap?arrow_forward
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