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The Dictator of a Small Country Has Been Removed and a New

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The dictator of a small country has been removed and a new government is forming. Among the first task for the new country is the creation of the country's laws. Instead of the above scenarios, the new government institutes a policy that allows all adult citizens to vote for representatives who will make new laws and serve in government. This describes:


Definitions:

Average Tax Rate

The total amount of taxes paid by an individual or business divided by the taxable income, reflecting the proportion of income paid in taxes.

Flypaper Theory

A concept suggesting that government grants and subsidies stick where they first land, meaning they benefit the entity they're directly given to rather than being efficiently redistributed.

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare, essentially focusing on who ultimately bears the cost of a tax.

Taxes Collected

The total amount of money garnered by a government through the imposition of taxes.

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