Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 33, Problem 17E
To determine
To explain:
The two possible causes of the changes that can be the reason for an unequal income distribution in the United States.
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- A nation's citizens often dislike the economy's distribution of income. Explain two methods for creating a more equal distribution of income.arrow_forwardUse a circular flow diagram to show how the allocation of resources and the distribution of income are affected by each of the following government actions. A 2-percentage-point reduction of the corporate income tax. An expansion of preschool programs for disadvantaged children. The levying of an excise tax on polluters.arrow_forwardOne 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_forward
- How will The Tax Reform for Acceleration and Inclusion will lessen the worsen poverty and income inequality in the country?arrow_forwardWhich 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 educationarrow_forwardThe table shows the distribution of market income. Suppose the government redistributes income by taxing the 60 percent of households with the highest market incomes 10 percent, then distributing the tax collected as an equal benefit to the 40 percent with the lowest market income. What percentage of total market income is redistributed to the second 20 percent of households? What is the income share of the third 20 percent of households after tax and redistribution? >>> Answer to 1 decimal place. earch The second 20 percent of households receives benefits equal to percent of total market income. The third 20 percent of households earns percent of total income after tax and benefits. I point(s) Households Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent Market income (percentage of total market income) 5 9 20 30 36 Nextarrow_forward
- What happens to poverty and inequality if income rises for both low-income and high-income workers, but it rises less for the high-income workers?arrow_forwardThe table shows the distribution of market income. Suppose that the government redistributes income by taxing the 60 percent of households with the highest market incomes 10 percent, then distributing the tax collected as an equal benefit to the 40 percent with the lowest market income. If the people whose market incomes are taxed cut their work hours and their market incomes fall by 10 percent, what is the distribution of income after taxes and benefits? Complete the table to show the new distribution of income. (Ignore any cost of administrating the redistribution scheme.) >>> Answer to 1 decimal place. Search Households Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent Market income (millions of dollars) 5 9 20 30 36 Income after tax and benef (percentage of tc income after ta and benefits) Nextarrow_forwardWhich 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_forward
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