a transfer payment or a purchase of goods and services. Which
ones clearly tend to decrease the inequality of income
distribution?
a. Payments of wages and family living allowances to
Canadian soldiers overseas
b. Employment-insurance payments to unemployed workers
c. Payments to provinces for support of highway
construction
d. Pensions of retired Supreme Court justices
e. Salaries paid to government workers
9. It is common to read articles in the newspapers by people who
think Canadians pay too much in taxes. One popular concept is
“tax freedom day,” the day in the year beyond which you get to
keep your income rather than pay it to the government as taxes.
For example, if the government collects 33 percent of GDP in
taxes, then “tax freedom day” is the 122nd day of the year, May 2.
a. Does everyone in the economy have the same tax
freedom day, no matter what his or her income?
b. How sensible is the concept of “tax freedom day” in a
country where the government provides some goods and
services to the people that they would otherwise purchase
on their own, such as primary education and healthcare
services?
