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.

---

Definitions:

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

Life Expectancy

The average number of years a person is expected to live based on demographic factors such as current age and gender, typically derived from statistical analysis.

Literacy Rate

The percentage of people within a population who are able to read and write at a specified age.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, measured by changes in the gross domestic product (GDP).