When the Government Implements Programs Such as Progressive Income Tax

question 6

Multiple Choice

When the government implements programs such as progressive income tax rates,which of the following is likely to occur?

• A)equality is increased and efficiency is increased.
• B)equality is increased and efficiency is decreased.
• C)equality is decreased and efficiency is increased.
• D)equality is decreased and efficiency is decreased.

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Definitions:

Expected Profit Rate

The anticipated return on investment, calculated based on potential revenues and costs.

Business Loans

Credit facilities extended to businesses for various purposes, including capital expenditure, operational costs, and expansion activities, typically with repayment terms.

Disposable Income

The sum of money households can spend or save once income taxes have been deducted.

Saving

The process of setting aside a portion of current income for future use, typically to achieve long-term financial goals or provide a safety net.