The belief that cutting taxes for the rich will eventually result in economic benefits for the middle-class and the poor is commonly referred to as:Group of answer choicesPork barrel politicsKeynesian economicsTrickle-down economicsSocialism

“The government should reduce income taxes” – this statement is an example of positive economics.Question 28Select one:TrueFalse

In class, we discussed the “veil of ignorance” justification for some redistribution of income. Under the veil of ignorance notion, it has been suggested that citizens might be in favor of some redistribution from the rich to the poor becauseSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.athe poor are often ignorant about how to escape poverty on their own.bthe rich have higher marginal utility of income than the poor.cthat would be their preferred policy if they had to form a viewpoint before knowing what kind of family they would be born into (i.e., their situation in life).dthe rich are sometimes uninformed about how to efficiently donate money where it will be most valued.

Lower taxes create a multiplier effect in the economy. It leads to:Group of answer choicesincreases in aggregate demand.subsidies.decreases in prices.technological advances.

Subsidies and tax breaks are forms ofGroup of answer choicesprotectionism.free trade.GATT.globalization.

Taxation that allows higher-income people to pay less of their income on taxes than lower-income people is called:A.regressive taxation.B.indirect taxation.C.proportional taxation.D.progressive taxation.SUBMITarrow_backPREVIOUS