government spending Flashcards
1
Q
reasons for government spending
A
-influence macroeconomy
-reduce income inequality
-correct market failure
2
Q
reasons for taxation
A
raise gov finance
-influence macroeconomy
-reduce income inequility
-correct market failure
-protectionism
3
Q
progressive tax
A
as income rises a greater proportion is paid in taxation
4
Q
proportional tax
A
when the proportion of tax paid stays the same of income rises
5
Q
regressive tax
A
when the proportion of income paid in tax falls as income rises
