Asked by Claire Layug on Jun 23, 2024
Verified
Senator Fujita argues that replacing the federal income tax with a national sales tax would increase the level of output. Senator Watson objects that this policy would benefit the rich at the expense of the poor.
A) Both senators' arguments are primarily about equality.
B) Both senators' arguments are primarily about efficiency.
C) Senator Fujita's argument is primarily about equality, while Senator Watson's argument is primarily about efficiency.
D) Senator Fujita's argument is primarily about efficiency, while Senator Watson's argument is primarily about equality.
Federal Income Tax
A tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.
National Sales Tax
A tax imposed by the government on sales of goods and services, collected at the point of sale and paid by the final consumer.
Efficiency
The degree to which resources are used optimally to produce goods and services, minimizing waste and maximizing output.
- Describe the effects of governmental actions on economic productivity and the allocation of wealth.
- Discern between the principles of efficiency and equality in the sphere of economic policy.
Verified Answer
SA
Sandra AndradeJun 28, 2024
Final Answer :
D
Explanation :
Senator Fujita's argument focuses on increasing output, which is an issue of efficiency. Senator Watson's concern is about the distributional impact of the tax change, which relates to equality.
Learning Objectives
- Describe the effects of governmental actions on economic productivity and the allocation of wealth.
- Discern between the principles of efficiency and equality in the sphere of economic policy.