129 (Last Word) Which of the Following Statements About Taxes

question 100

Multiple Choice

129. (Last Word) Which of the following statements about taxes and government spending is correct?

• A) Despite the overall progressive tax system, government expenditures disproportionately favor the rich and result in a system that is slightly regressive.
• B) The progressive tax system is almost perfectly offset by regressive expenditures, making the overall system proportional.
• C) The regressive tax system is offset by expenditures directed toward lower-income households, making the overall system proportional.
• D) The overall system of taxes and spending is progressive, as over $1 trillion per year gets transferred from upper-income households to lower- and middle-income households.

Understand the historical context and purpose of Social Security.

Recognize demographic variations in retirement patterns and their implications.

Understand the multifaceted influences on the decision to retire including health, financial stability, personal preferences, and socio-economic factors.

Recognize the socioemotional changes and challenges faced by older adults including cohabitation, marital satisfaction, and sexuality.

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Definitions:

Elastic Demand

The case in which the price elasticity of demand is greater than 1.

Excise Tax

A tax levied on specific goods, services, or transactions, often with the aim of discouraging their use or raising revenue.

Elastic Supply

A scenario where the quantity supplied of a good or service changes significantly in response to changes in its price.

Deadweight Loss

A loss of economic efficiency that occurs when equilibrium for a good or a service is not achieved, leading to a misallocation of resources.