Criteria That Economists Use in Selecting a Tax System Include

question 176

Multiple Choice

Criteria that economists use in selecting a tax system include:

• A)the ability to pay.
• B)employment status.
• C)consumer debt.
• D)the maximal deadweight loss.

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Definitions:

Automatic Stabilizers

Economic policies and programs, like unemployment benefits, that automatically adjust to stabilize an economy during fluctuations.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, usually visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Automatic Stabilizers

Economic mechanisms, such as progressive taxation and welfare, that automatically adjust to counteract economic fluctuations without the need for explicit government intervention.

Unemployment Compensation

A government program that provides financial assistance to individuals who have lost their jobs through no fault of their own.