A U.S.presidential candidate promises to redistribute income and encourage economic growth.Why might these goals be in conflict?
A) The poor, on average, save more than the rich. Taxing the incomes of the rich to transfer to the poor will result in an increase in total savings.
B) Taxing the incomes of the rich to transfer to the poor will result in the rich saving more.
C) Taxing the incomes of the rich to transfer to the poor will provide disincentives for work and capital accumulation.
D) Taxing the incomes of the rich to transfer to the poor will provide incentives for the rich to work more to make up for income lost to taxes.
Correct Answer:
Verified
Q63: A valid argument against redistributing income to
Q64: The existence of differences between the average
Q65: Which of the following is a source
Q66: High school graduates in the United States
Q67: Wage discrimination occurs when people are paid
Q70: A relatively larger proportion of _ work
Q71: Some employers choose to discriminate as a
Q72: If labor markets are competitive,discriminating employers:
A) suffer
Q74: Longitudinal data on income inequality in the
Q90: In the United States the degree of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents