The Table Given Below Shows the Absolute Tax Amounts Under

question 83

Multiple Choice

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2

-Those who argue that welfare programs are a drag on the economy are of the view that welfare programs funded by taxes:

• A)reduce the opportunity cost of labor.
• B)raise the incidence of poverty and income inequality.
• C)raise the incentive to work.
• D)reduce the tax-liability of the tax-payers.
• E)reduce the demand for labor.

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Definitions:

Induced Consumption

Consumer spending that varies with income, representing the portion of income that households spend on goods and services rather than saving.

Disposable Income

Income available to households for the strategies of saving and spending after tax deductions.

Billion

A Billion is a numerical value equivalent to one thousand million (1,000,000,000) in the American short scale, commonly used in financial and demographic contexts.

Saving

The portion of income that is not spent on consumption or taxes, often set aside for future use or investment.