Edgar Browning and William Johnson, in a Paper Published in the Journal

question 149

Multiple Choice

Edgar Browning and William Johnson, in a paper published in the Journal of Political Economy (1984) , presented evidence that a one-dollar transfer to the bottom 40 percent of income distribution costs the top 60 percent nine dollars.If correct, this finding proves

• A)the tax system is generating significant excess burdens.
• B)these transfers are not worth the cost.
• C)loopholes have to be closed.
• D)the burden of the tax system is too great.

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Definitions:

Incidental Damages

Expenses or costs that arise directly from a breach of contract, beyond the direct damages or losses incurred.

Employment Contract

A legally binding agreement between an employer and an employee that outlines the terms of employment, including duties, responsibilities, compensation, and conditions of work.

Nominal Damages

Small monetary compensation awarded to a plaintiff in a lawsuit when no actual damage was suffered or when the plaintiff is unable to prove actual losses.

Plaintiff

The party who initiates a lawsuit or legal action against another party in a court of law.