MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 12, Problem 20SQ
To determine
The shortsightedness effect.
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Explain how fiscal policy, monetary policy, and economic factors influence public budgeting. In what ways have you personally been impacted by state or local budgeting policies?
Write true or false for the following:
a.The government modifies the taxation system sometimes to discourage spending so it can mop up over production in the economy.
b.A progressive tax system increases income inequality.
c. direct tax is said to be direct tax when the impact and incidence of a tax are on one and the same person.
2. Fill in the blanks with the correct terms
______is a tax where the _____ falls on one person and the _____
Optimal fiscal federalism refers to
A.the optimal distribution of property taxes across local governments within a state.
B.the optimal division of wealth across states.
C.the division of offering and financing of public goods at different levels of government that results in the optimal provision of public goods.
D.the offering and financing of public goods at the federal level that results in the highest quantity of public goods provided.
Chapter 12 Solutions
MACROECONOMICS FOR TODAY
Ch. 12.4 - Prob. 1YTECh. 12 - Prob. 1SQPCh. 12 - Prob. 2SQPCh. 12 - Prob. 3SQPCh. 12 - Prob. 4SQPCh. 12 - Prob. 5SQPCh. 12 - Prob. 6SQPCh. 12 - Prob. 7SQPCh. 12 - Prob. 8SQPCh. 12 - Prob. 9SQP
Ch. 12 - Prob. 10SQPCh. 12 - Prob. 11SQPCh. 12 - Prob. 1SQCh. 12 - Prob. 2SQCh. 12 - Prob. 3SQCh. 12 - Prob. 4SQCh. 12 - Prob. 5SQCh. 12 - Prob. 6SQCh. 12 - Prob. 7SQCh. 12 - Prob. 8SQCh. 12 - Prob. 9SQCh. 12 - Prob. 10SQCh. 12 - Prob. 11SQCh. 12 - Prob. 12SQCh. 12 - Prob. 13SQCh. 12 - Prob. 14SQCh. 12 - Prob. 15SQCh. 12 - Prob. 16SQCh. 12 - Prob. 17SQCh. 12 - Prob. 18SQCh. 12 - Prob. 19SQCh. 12 - Prob. 20SQ
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- 1. Explain the Median Voter Theory in your own words and describe how it impacts the campaign trail. It may help to use a specific political issue as an example. 2. Describe one benefit that arises from median voter theory. 3. In response to two of your peers, describe a negative outcome that comes from Median Voter Theory. It may help to think about it in terms of: a. Candidates' representatich of their base b. Impact on policy that ends up being passed for society.arrow_forward40. The most efficient tax system has a broad tax base and a low tax rate. A) True B) False 41. Making the income tax more progressive by adding more tax brackets potentially can result in A) stronger economic growth B) a more "equitable" tax C) no effect on equity or economic growth D) slower economic growth 42. The Atlanta city council decides to double taxes on small business in the downtown area to raise more tax revenue to fund more social programs. From an economic growth perspective, why is this a misguided economic policy? A) it is not a bad policy; doubling taxes will automatically double tax revenue B) excessive taxes on business can result in reduced jobs, incomes and business creation because business simply moves to a new government jurisdiction. C) it is not a bad policy; raising taxes will double tax revenue, raise income levels, and encourage business creation. D) excessive taxes will provide more social benefits, so business will tolerate unusually high taxes and stay…arrow_forwardAssume a state's general sales tax is 6%; this is an example of a _______________ income tax. A. Progressive B. Proportional C. Regressivearrow_forward
- Which tax system requires higher-income taxpayers to have lower tax rates, even though they pay a larger amount of tax when compared to lower-income taxpayers? a. a proportional tax b. a progressive tax c. a regressive taxarrow_forward1. Why fiscal administrations important in government?arrow_forwardIf low-income families pay 10% of their income in taxes while high-income families pay 20% of their income in taxes, the tax system is which of the following? Group of answer choices Unfair Regressive Excessive Proportional Progressivearrow_forward
- A progressive tax is: A. designed to take a greater percentage of the income of lower-income groups than of higher-income groups B. based on the benefits received principle. C. not based on the ability to pay principle D. designed so that everybody would be charged the same percentage of their income as taxes. E. designed to take a larger percentage of the income of higher-income groups than of lower-income groupsarrow_forwardWrite the letter of your choice on the space provided before each number. Thus, A – if only the 1st statement is CORRECT; B- if only the 2ND statement is CORRECT; C- if both 1st and 2nd statements are CORRECT and D- if both 1st and 2nd statements are INCORRECT. 1. Progressive taxes place a greater burden on those best able to pay. Value added tax is a progressive tax. 2. Proportional taxes are taxes levied at a constant rate. These taxes place an equal burden on the rich, the middle class, and the poor.arrow_forwardExplain: “Politicians would make more rational economic decisions if they weren’t running for reelection every few years.”arrow_forward
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