Podcast
Questions and Answers
Which concept refers to the idea that individuals in similar economic situations should be treated equally by the government?
Which concept refers to the idea that individuals in similar economic situations should be treated equally by the government?
- Progressive taxation
- Deadweight loss
- Horizontal equity (correct)
- Vertical equity
What is a potential consequence of high tax rates on the wealthy according to the text?
What is a potential consequence of high tax rates on the wealthy according to the text?
- Increased entrepreneurship
- Enhanced welfare activities by the government
- Negative impact on economic output (correct)
- Encouragement of savings and investments
How does the text suggest governments can achieve greater equity through taxation?
How does the text suggest governments can achieve greater equity through taxation?
- Implementing flat tax rates for all income levels
- Imposing high tax rates on the rich (correct)
- Decreasing tax compliance for high-income individuals
- Reducing tax rates for lower-income groups
What conflict arises when governments emphasize redistribution to achieve equity?
What conflict arises when governments emphasize redistribution to achieve equity?
What term is used to describe the efficiency costs associated with government redistribution policies?
What term is used to describe the efficiency costs associated with government redistribution policies?
How can an optimal budgetary policy address the conflict between efficiency and equity?
How can an optimal budgetary policy address the conflict between efficiency and equity?
What is the main objective of redistribution policies?
What is the main objective of redistribution policies?
Which of the following is NOT a cause of market failures mentioned in the text?
Which of the following is NOT a cause of market failures mentioned in the text?
How can governments influence resource allocation in the economy?
How can governments influence resource allocation in the economy?
What is one of the ways governments can achieve the distributive function of the budget?
What is one of the ways governments can achieve the distributive function of the budget?
Which action is NOT associated with the role of governments in correcting market failures?
Which action is NOT associated with the role of governments in correcting market failures?
Why should redistribution measures be accomplished with minimal efficiency cost according to the text?
Why should redistribution measures be accomplished with minimal efficiency cost according to the text?
What is the main goal of the Competition Act in India?
What is the main goal of the Competition Act in India?
Why does the government intervene in income and wealth distribution?
Why does the government intervene in income and wealth distribution?
Which ideology put pressure on governments to play a redistributive role?
Which ideology put pressure on governments to play a redistributive role?
How does the government redistribute income and wealth through the budget?
How does the government redistribute income and wealth through the budget?
Why is it important for the government to intervene in income and wealth distribution?
Why is it important for the government to intervene in income and wealth distribution?
What is the distributive function of the budget concerned with?
What is the distributive function of the budget concerned with?
Flashcards are hidden until you start studying
