Suppose Fairness Is Defined as Those with the Highest Incomes

question 8

Multiple Choice

Suppose fairness is defined as those with the highest incomes can afford to pay a greater proportion of their income in taxes. Then which of the following taxation systems would be consistent with this notion of fairness?

• A) A true flax tax.
• B) A flat sales tax on consumption purchases.
• C) A progressive tax on income.
• D) A fixed federal tax of $5,000 that everyone pays regardless of income status.

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Definitions:

Government Expenditures

The total amount spent by the government in a particular period, including spending on goods, services, and transfer payments.

Net Exports

The difference between a country's total exports of goods and services and its total imports, which can be either positive (surplus) or negative (deficit).

GPI

An alternative measure to GDP that accounts for the economic well-being of a country by incorporating environmental and social factors.

Well-Being

Defines the state of being comfortable, healthy, or happy, often considered on personal, social, and economic levels.