Suppose That in 2020 the Average Citizen's Federal Tax Bill

question 55

Multiple Choice

Suppose that in 2020 the average citizen's federal tax bill is $14,888 per person,and total federal spending is $13,997 per person.In 2020,the federal government will have

• A)a per person budget surplus of $891.
• B)a per person budget deficit of $891.
• C)horizontal equity.
• D)vertical equity.

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Definitions:

Collective Goods

Goods that are non-excludable and non-rivalrous, meaning that their consumption by one individual does not reduce availability to others and people cannot be effectively excluded from using them.

Private Producer

An individual or company that produces goods or services in the private sector, usually with the goal of making a profit.

Unregulated Market

A market where operations are conducted without oversight by governmental regulations or interventions.

Product Variety

The assortment or range of different products or goods that are available in the market or produced by a company.