wilsonwong17

MC
1. Which of the following is NOT a possible reason why the income gap is in general larger than the consumption gap?
A. The unemployed may have more leisure time than the employed.
B. The rich generally spend a smaller proportion of their income on consumption than the poor.
C. The poor may finance their consumption by dissaving or borrowing.
D. The government may impose taxes on the rich and provide transfers to the poor.


2. A more even income distribution will result if
A. the government introduces the goods and services tax.
B. the "User pays" Principle replaces the "Ability-to-pay" Principle and is widely adopted in the provision of public services.
C. the government freezes government fees and charges related to people's livelihoods during periods of inflation.
D. the government sets up the Equal Opportunities Commission.


Can somebody explain the answers of the above questions to me? Thanks a lot!

tommynky

i think Q1 is A, Q2 is D?

wilsonwong17

can you explain it to me? many thanks ^^

albealbe

我覺得第二題係C
因為the amount of charges and fees paid by taxpayers are the same, irrespective of their income~
therefore,to the low income group,the cancellation of the amount of charges contributes a higher proportion to their income.
但B都有可能arm...如果個ability to pay principle 係會tax rate rises when the taxpayers' income rises(姐係aggressive 的話~~)，但如果係proportional的話就無影響income gap~~

應該唔會D,因為equal opportunity不等於equal income~~