Many Economists Argue That Items Such as Food and Clothing

question 21

Multiple Choice

Many economists argue that items such as food and clothing should be exempt from sales tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over

• A) economic stability.
• B) economic growth.
• C) equity.
• D) efficiency.

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Definitions:

False Positive

A test result that wrongly indicates the presence of a condition or attribute when it is not actually present.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses, lasting up to a few seconds.

Selectively Attended

The cognitive process of focusing on a particular object in the environment for a certain period, while ignoring other perceivable information.

Long-term Memory

A type of memory storage that can hold information for extended periods of time, ranging from minutes to a lifetime, encompassing a wide range of knowledge, experiences, and skills.