Taxes Adversely Affect the Allocation of Resources Because

question 197

Multiple Choice

Taxes adversely affect the allocation of resources because

• A) they do not always fall more heavily on the rich than on the poor.
• B) the taxes collected are not enough to finance government spending.
• C) not everyone pays taxes.
• D) they distort prices and thus distort the decisions of households and firms.

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Definitions:

Outsourcing

The practice of hiring third parties to perform services or produce goods traditionally performed or made in-house, to reduce costs or improve efficiency.

Logistics

The process of planning, implementing, and controlling the efficient flow and storage of goods, services, and related information from point of origin to point of consumption.

Company Coalition

A temporary alliance or partnership between companies to achieve a common objective, often strategic or operational.

Suppliers

Entities that provide goods or services to another organization, usually in a business-to-business relationship.