Which of the following is an example of the redistribution role of government? Select one: O a. Welfare benefits. 0 b. The allocation of tradable pollution emission rights. 0 c. The use of monetary policy to control inflation. Q d. The introduction of savings schemes such as KiwiSaver. Fiscal drag is where Select one: O a. there is a lag in government spending having any effect. O b. increases in nominal wages push taxpayers up tax brackets. O c. increases in government spending hold back economic growth. O d. taxpayers look for ways to avoid paying tax they perceive is unfair.One of the principles of the Public Finance Act is that Select one: O a. the Government cannot run a deficit. O b. taxes can only be changed every 5 years. O c. the Government is to be risk averse. O d. assets cannot be sold.Which of the following taxation systems does not conform to the idea of vertical equity? Select one: 0 a. A flat tax where every dollar of income is taxed at 25 percent. 0 b. A progressive tax system. O {2. (EST. 0 d. A poll tax where every taxpayer pays an identical lump sum amount of $10,000 in tax. If a society moves from a gini co-efficient of 0.1 to 0.2 then we can conclude many things but we cannot determine Select one: O a. how absolute poverty levels have changed. O b. how fast incomes have risen in the bottom deciles. O c. if the rich have become richer and the poor have become poorer. O d. all of the above.Which of the following policies is more likely,( to be promoted by a political party that could be described as being on the "Left"? Select one: 0 a. A flat tax rate system. 0 b. Welfare reform. O c. Privatisation of state owned enterprises. C) d. An increase in the top personal tax rate. Economists use the term "effective marginal tax rate" to refer to Select one: O a. the marginal tax rate paid on income. O b. total losses (e.g. tax, welfare abatements) from an extra dollar of earned income. O c. the average tax rate. O d. the rate of GST.The tax rebate that applies to Kiwisaver but not to other superannuateon schemes violates the principle of Select one: O a. horizontal equity O b. vertical equity. O c. the equity / efficiency trade off. O d. equality.Which of the following could possibly be used as "tax units"? Select one: O a. Individuals. O lo. Households. O c. Families. O d. All of the above. Bracket creep (or fiscal drag) results from a combination of Select one: Q a. inflation and a progressive tax system. 0 lo. inflation and a regressive tax system. O c. economic growth and flat tax rates. 0 d. inflation and economic growth