ch 3-4 - The Big Tradeoff Taxing the rich to help the poor...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The “Big Tradeoff” Taxing the rich to help the poor, i.e., Redistributing buying power from the rich to the poor. “Progressive income taxes” assess higher rate against large incomes than against small incomes. The wealthy pay a proportionately larger share of total taxes. How do the poor use welfare payments? Do wealthy taxpayers realize any benefits from that portion of their taxes that go to help the poor? Do the wealthy pay a proportionately larger portion of the cost of public education? Do the wealthy benefit from that portion of their taxes that fund public education? Do high taxes on the wealthy discourage investment, initiative, and hard work?
Image of page 2
Opportunity Cost The highest-valued alternative that we give up to get something is the opportunity cost of the activity chosen. Central idea of economics: every choice involves a cost. The opportunity cost of being a full-time student includes the earnings you could make from a job if you were not in school.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern