What is the difference between progressive and regressive
methods of taxation? Explain.
A progressive tax is a
kind of tax which takes a bigger percentage of income from taxpayers as their
income is increasing. An example of it would be the federal income tax.
A regressive tax is the
opposite of progressive tax. The higher-income taxpayers would pay, the smaller
percentage of their income than lower-income taxpayers since the tax itself isn’t based on the ability of paying it. An example would be
the state sales tax.
Identify actions a government can take to protect its domestic
industries. Describe the effects that these actions have on domestic consumers.
government has few choices of action to protect its domestic industries. It can
implement trade barriers as for example the import quotas and tariffs on
imported goods. The two are both lower the consumer's welfare. The tariffs
usually would increase the prices of imported goods, therefore consumers would
choose the domestic good, meanwhile the import quotas decrease the supply of
imports and consumers are obligated to purchase domestic goods of prices higher
than the imported goods.
Describe the difference between public goods and private
goods. Explain why government action is necessary to ensure the provision of
The public good would be a non rival
and non excludable good. It means that one’s consumption doesn’t affect the consumption of the other
and that one cannot prevent the other from consuming a good of product.
The private good is on the contrary a
rival and excludable kind of good. It means that for example if one owns a car
of a limited series than there is not enough of it for everybody to own and the
person is not obligated to allow anybody to drive his car.
There are few reasons for which the
action is necessary to ensure the provision of public goods such as the very
efficiency of this action, the goods and services might be beneficial not only
for the purchaser, but other individuals, the value of the good and service
becomes greater than what an individual can pay, and also it boosts the
What does the government do to protect competition in a
free-market system? Explain why the government needs to take these actions.
The government applies equal taxes and regulations
to protect the competition. It needs to apply those in order to prevent the
creation of monopoly.
How can censorship negatively affect economic activity?
The censorship has at its core to
prevent or to minimalize one’s knowledge or access to a product,
therefore as a consequence it can increase the prices and have negative
consequences on companies and economy in general.
Rousseau says that "property is the
most sacred of all the rights of citizenship." What do you think he means
by this? Why might property be the most important right of a citizen?
I think that Rousseau
believes that the right to property is an essential right, a basic one, more
important than liberty in some respect.
RousseauI takes this
point of view since he belives the right to property builds the society,
controls and rules it, so without it a society cannot function properly.
Why does Rousseau say the people cannot
govern themselves without rulers?
People cannot govern
themselves because they would go for personal and individual good, rather than
collective good, therefore they need the sovereign to think and act in the
interests of collectivity. At the same time the social contract they are in is
the very base for such arrangment to allow the well- being on the system.
Do you think it is true that "every
government constantly tends to become lax," meaning relaxed, inefficient,
or lazy? Does your own attitude about the government match Rousseau's
I don’t agree with the statement saying “every government
constantly tends to become lax”. Nevertheless I do agree with Rousseau who believes there is
often a division between the government’s agenda and the good of common will of people, what often
causes clashes between the two. I believe the government has tendencies to
forget that they represent the people and their interests.
Interpret the following line: "And it
may justly be said that a government has reached the last stage of corruption,
when it has ceased to have sinews [strengths] other than money." What
other government strengths might Rousseau be referring to?
When a government
starts considering expanding its budget and spending as its sole way of
increasing its power, the government loses focus from its mean reason of
existing which is enforcing equally the rule of law on its entire citizenry and
protecting private ownership and individual freedoms.
strengths can be the rule of law and law enforcement and the legitimacy
emanating from fair elections to represent the interests of the citizenry.
Throughout the essay, Rousseau alludes to
society's confidence —or lack thereof —in its ruling government. According to the passage, what is
the primary reason for citizen mistrust in a government? How might a government
avoid losing the trust of its citizens?
The main reason for
citizen mistrust in a government is when there is a misalignment or conflict
between the general and individual wills. A government can avoid losing the
trust of its citizens by placing their general interest before the individual
interests of those in power. The government exists to serve its people rather
than the opposite. Citizens don’t work in order to finance the government’s