Which of the Following Statements Is True

question 140

Multiple Choice

Which of the following statements is true?

• A)Redistribution of income through taxation results in greater income for everyone.
• B)There is no tradeoff between efficiency and equity.
• C)If taxes are so high that people work a lot less, the redistribution of income could make everyone worse off.
• D)The pursuit of greater equity through taxation and redistribution may promote efficiency by making everyone happier.
• E)Only the rich are negatively affected by very high tax rates.

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Definitions:

Low-Income Earners

Individuals who receive earnings that are significantly lower than the average for their community or country, often leading to financial struggles and limited access to resources.

High-Income Earners

Individuals or households that earn a significantly higher income than the average or median for a particular region or society.

Lobbies

Groups of people or organizations that seek to influence political decisions and policies, typically by engaging with legislators or members of government.

Civil Society

Civil society refers to the "third sector" of society, separate from government and business, including NGOs, NPOs, and other voluntary groups that serve as a buffer between the individual and the state.