Suppose that in 2012 the average citizen's federal tax bill is $14,888 per person,and total federal spending is $13,997 per person.In 2012,the federal government will have
A) a per person budget surplus of $891.
B) a per person budget deficit of $891.
C) horizontal equity.
D) vertical equity.

Question

Quizplus · Accepted Answer

The average citizen's federal tax bill ($14,888) is less than the total federal spending per person ($13,997), which means that the federal government has a per person budget deficit of $891. Horizontal equity refers to treating individuals with similar incomes in the same way, and vertical equity refers to treating individuals with different incomes differently. Neither of these concepts applies to the given information.

Suppose That in 2012 the Average Citizen's Federal Tax Bill