Edgar Browning and William Johnson, in a paper published in the Journal of Political Economy (1984), presented evidence that a one-dollar transfer to the bottom 40 percent of income distribution costs the top 60 percent nine dollars. If correct, this finding proves
a. the tax system is generating significant excess burdens.
b. these transfers are not worth the cost.
c. loopholes have to be closed.
d. the burden of the tax system is too great.
a
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If the costs of production decrease, there is
A) an increase in aggregate supply and the AS curve shifts rightward. B) an increase in the quantity of real GDP supplied and a movement up along the AS curve. C) a decrease in aggregate supply and the AS curve shifts leftward. D) a decrease in the quantity of real GDP supplied and a movement down along the AS curve. E) an increase in aggregate supply and the AS curve shifts leftward.
The demand by all the consumers of a given good or service is the ________ for the good or service
A) market demand B) scheduled demand C) quantity demanded D) law of demand