In order to construct a more complete picture of the economic burden of government across income classes, economists usually:
A)include both tax payments as well as transfer payments received
B)focus only on the tax payments of wealthy tax payers
C)limit their analysis to taxes based on the ability-to-pay principle
D)focus their analysis on issues of tax efficiency

Question

Quizplus · Accepted Answer

Including both tax payments and transfer payments received provides a more accurate representation of the economic burden of government across income classes. This approach takes into account the redistributive nature of government policies and how they affect different income groups. Focusing only on the tax payments of wealthy taxpayers, as in option B, would provide an incomplete picture. Limiting the analysis to taxes based on the ability-to-pay principle, as in option C, would also not capture the full economic burden of government. Focusing on tax efficiency, as in option D, would address a different aspect of taxation and not directly relate to the economic burden of government.

In Order to Construct a More Complete Picture of the Economic