In National- Income Accounting, a Fall in G_a (other Things

question 78

Multiple Choice

In national- income accounting, a fall in G_a (other things being equal) will be recorded if

• A)the number of employed civil servants increases, but total government salaries remains unchanged.
• B)the total salaries paid to civil servants falls.
• C)the true market value of government- produced goods and services decreases.
• D)labour productivity in the government sector falls.
• E)wages in the government sector rise.

---

Definitions:

Low-Income

Refers to individuals or families whose earnings are significantly lower than the average, often defined by government thresholds.

Progressive Tax

A tax system in which the tax rate increases as the taxable base amount increases, meaning higher earners pay a higher percentage of their income in taxes.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of additional income that will be taken as tax.

Income Increases

A rise in the amount of money received, especially on a regular basis, by an individual or group.