Scenario 20-1 Suppose That a Society Is Made Up of Five Families

question 175

Multiple Choice

Scenario 20-1
Suppose that a society is made up of five families whose incomes are as follows:
$120,000; $90,000; $30,000; $30,000; and $18,000.
The federal government is considering two potential income tax plans:
Plan A is a negative income tax plan where the taxes owed equal 1/3 of income minus $20,000.
Plan B is a two-tiered plan where families earning less than $35,000 pay no income tax and families earning more than $35,000 pay 10% of their income in taxes. The income tax revenue collected from those families earning over $35,000 is then redistributed equally to those families earning less than $35,000.
-Refer to Scenario 20-1.Assuming that utility is directly proportional to the cash value of after-tax income,which government policy would an advocate of utilitarianism prefer?

• A) Plan A
• B) Plan B
• C) either Plan A or Plan B
• D) neither Plan A nor Plan B because any plan that forcibly redistributes income is against the philosophy

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Definitions:

Fetal Skull

The bony structure forming the head of the fetus, characterized by soft spots called fontanelles that allow for compression during birth.

Intramembranous Bones

Bones that develop directly within sheets of connective tissue, such as the skull's flat bones.

Hyaline Cartilage

A translucent type of cartilage found on many joint surfaces, characterized by its glassy appearance.

Fetal Skull

The fetal skull is the soft, flexible head structure of a fetus that is designed to aid in the birth process by slightly deforming as it passes through the birth canal.