When the Cost and Benefits of a Policy Are Narrowly

question 58

Multiple Choice

 When the cost and benefits of a policy are narrowly concentrated,they are 

• A) limited to a relatively small number of citizens. 
• B) spread over many, most, or even all citizens. 
• C) enjoyed by many demographics. 
• D) limited a geographic region. 
• E) spread over a number of states.

---

Definitions:

Individual Income Tax

A tax levied on the income of individuals or households by the government.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to taxation.

Marginal Tax Rate

The tax rate that applies to each additional dollar of income, indicating how much of the next dollar earned will be taken in taxes.

Average Tax Rate

Average Tax Rate is the proportion of the total income paid as taxes, calculated by dividing the total taxes by the total taxable income.