Question

4 or 5

4.) Taxation, Distribution of Income and Resource Allocation First, explain how society decides rationally on horw much equality it wants relative to income distribution. Next, discuss the policies available to the government to distribute income and the impact such policies may have on the microeconomy. Then, explain how despite economists use of economic analysis to provide sugsestions for responding to economic problems (i.e. housing crisis, financial crisis, Recession) the economy still often confronts market's short-comings that deeply impact consumers and producers Lastly, using any graph of your choice from the textbook, graphically illustrate your explanation 5.) Taxation, Distribution of Income and Resource Allocation First, using the following hypothetical income-tax table, compute the marginal and average tax rates Income Income Tax Marginal Tax Rate Average Tax Rate $2,000 $20,000 $30,000 $2,700 $40,000 $3,200 $50,000 $3,500 Next, describe whether or not the tax is progressive, proportional, or regressive? Lastly, develop a concluding statement using the criteria of equity and efficiency in taxation to assert whether or not Americans are overtaxed

Answer 1

The detailed answer is given below.

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