Which of the Following Statements Is Concerned with Efficiency Rather

question 60

Multiple Choice

Which of the following statements is concerned with efficiency rather than equity?

• A) It is not fair to tax the income earned by the wealthy at higher rates than the poor.
• B) Excise taxes on tobacco products affect low-income families the most and should be reduced.
• C) Our income tax system should be more progressive than it is now.
• D) Taxes cause distortions in markets and reduce social welfare.
• E) The best type of income tax is a flat tax because it treats everyone the same.

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Definitions:

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The constitutional right to reject a decision or proposal made by a law-making body. It is often used by the president or head of state in many countries.

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The 37th President of the United States (1969–1974), known for his foreign policy achievements and the Watergate scandal that led to his resignation.

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A program established by the United States government in 1980 to address hazardous waste sites and to clean up environmental contamination.