Asked by Sydnee Frakes on Jun 05, 2024
Verified
(Last Word) For each dollar paid in taxes,approximately how much do households in the top quintile receive back in the form of government expenditures?
A) 12 cents.
B) 28 cents.
C) 41 cents.
D) 73 cents.
Government Expenditures
The total amount spent by the government on goods, services, and public projects.
Households
Economic entities (of one or more persons occupying a housing unit) that provide resources to the economy and use the income received to purchase goods and services that satisfy economic wants.
Top Quintile
Refers to the highest fifth or 20% segment of a population or group sorted by a particular metric, often used in the context of income distribution.
- Examine how government expenditure and taxation impact various income brackets differently.
Verified Answer
BK
Brian KunstJun 08, 2024
Final Answer :
C
Explanation :
Households in the top quintile, which represent the highest earners, typically receive less in government expenditures compared to what they pay in taxes. However, they still receive a portion back in the form of various government services and benefits. The correct figure is approximately 41 cents for every dollar paid in taxes. This reflects the progressive nature of the tax system and government expenditure distribution, where higher earners pay more in taxes and generally receive less in direct government benefits compared to lower earners.
Learning Objectives
- Examine how government expenditure and taxation impact various income brackets differently.