Category: Income Inequality

A. Social Security income of the elderly and disabled
B. none of these answers
C. wages fixed by a union or other labour contract
D. equal to the minimum wage
E. a person’s normal or average income

A. the demand curve for accountants to shift to the right, since the productivity of accountants has increased
B. firms to move up their demand curves for accountants
C. the demand curve for accountants to shift to the left, since it requires fewer accountants than it did before to do the same amount of work.
D. firms to move down their demand curves for accountants

A. wages of men will be higher but the marginal productivity of men will be lower than it otherwise would be
B. the wages of men will be lower but the marginal productivity of men will be higher than it otherwise would be
C. both the wages and the marginal productivity of men will be lower than they otherwise would be
D. both the wages and the marginal productivity of men will be higher than they otherwise would be

A. remains constant
B. increases since the cost of forgoing one hour of work increases
C. decreases since the customer now has more income to spend
D. may increase of decrease depending on the individual’s preferences.

A. those will equal ability to pay should bear equal tax burdens.
B. those who benefit the most from government service should bear the higher tax burden
C. those with equal ability to pay should bear unequal burdens
D. those with greater ability to pay should pay more

A. is the way in which a tax is structured
B. occurs when households can alter their behaviour and do something to avoid paying tax
C. occurs when taxes cause prices to increase but wages to fall.
D. is the ultimate distribution of a tax’s burden

A. a benefit in kind.
B. a means tested cash benefit
C. a universal (social insurance based) benefit
D. none of the above

A. income tax
B. VAT
C. a tax on profits.
D. inheritance tax

A. an equal tax
B. a proportional tax
C. a progressive tax
D. a regressive tax

A. structure of the tax.
B. ultimate distribution of a tax’s burden
C. behaviour of shifting the tax to another party
D. measure of the impact the tax has on employment and output