In Most Cases,taxes Reduce Economic Efficiency Because

question 62

Multiple Choice

In most cases,taxes reduce economic efficiency because

• A) they lower prices for consumers and cause firms to suffer.
• B) they increase firms' profits at the expense of consumers.
• C) taxes are perceived as unfair by some taxpayers.
• D) the government often spends tax revenues on programs that some voters don't like.
• E) they reduce consumer surplus and producer surplus.

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Definitions:

Proportions

Measures that express the relationship of a part to the whole, typically in the form of a fraction or percentage.

Ordinal Data

Ordinal data is a type of categorical data with a set order or scale, but without a standardized difference between the categories, such as rankings or levels of satisfaction.

Ordered

Arranged or organized in a sequence according to some specific rule or set of rules.

Ranked

The process or result of ordering or classifying entities based on criteria or measurements to establish a hierarchy or priority.