Based on information provided in the textbook, which of the following statements is true regarding taxing millionaires and the budget deficit in 2012?
A) If the government had taxed all income earners who earned more than $1 million a 100 percent income tax rate, the budget deficit would have been completely eliminated, and a budget surplus would have been incurred.
B) If the government had taxed all income earners who earned more than $1 million a 50 percent income tax rate, the budget deficit would have been completely eliminated.
C) If the government had taxed all income earners who earned more than $1 million a 100 percent income tax rate, the budget deficit would have fallen but not been completely eliminated.
D) If the government had taxed all income earners who earned more than $1 million a 100 percent income tax rate, the budget would have been balanced.
C
You might also like to view...
In a prisoners' dilemma game, in the Nash equilibrium
A) neither player gets his or her best outcome. B) both players get their best outcome. C) one player gets his or her best outcome and the other player does not. D) collusion would not alter the outcome. E) Either answer A or C might be correct depending on whether the players communicate with each other or do not communicate with each other.
In the short run
A) all inputs are variable. B) all firms experience increasing returns to scale. C) some firms experience economies of scale. D) no firm experiences economies of scale.