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Which of the following statements is FALSE?
Nonneutral Taxes
Taxes that affect economic choices, potentially leading to inefficiencies or changes in market behavior, unlike neutral taxes which do not alter decision-making.
Externalities
Effects of a production or consumption activity on other parties not directly involved in the transaction, which may be either positive or negative.
Neutral Taxes
Taxes that do not affect the allocation of resources between different goods or activities in the economy.
Excess Burdens
The economic inefficiencies or losses that result from imposing taxes or government policies.
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