One Argument Against Using Taxation to Pay Off the Public

question 54

Multiple Choice

One argument against using taxation to pay off the public debt is that it will redistribute wealth from

• A) poorer people who do not own bonds to richer bondholders.
• B) poorer bondholders to richer people who do not own bonds.
• C) richer bondholders to poorer people who do not own bonds.
• D) richer bondholders to richer people who do not own bonds.

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Definitions:

Breakeven

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

High Value

Referring to items or services deemed of significant worth, usually due to their quality, utility, scarcity, or demand.

Low Value

Refers to items or services that are considered to be of lesser worth or importance, either monetarily or in terms of utility.

Expected Profit

An estimate of the potential earnings from an investment or business venture, incorporating the likelihood of different outcomes.