Which of the Following Statements Is Concerned with Efficiency Rather

question 143

Multiple Choice

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

• A) Sales taxes on food are regressive and should be eliminated.
• B) Income taxes should be raised on low-income families so that everyone pays.
• C) The United States should implement a wealth tax on upper-income households.
• D) Excise taxes tend to raise prices for consumers.
• E) The overall tax system in the United States should be much more progressive.

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Definitions:

Medicaid

A government insurance program for individuals and families with low income and resources, providing health coverage in the United States.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to help recover from the Great Depression.

Federal Government

The national government of a federation that holds the authority over the entire nation, responsible for national defense, foreign policy, and federal laws.

Depression

An intense and extended decrease in economic activity, marked by substantial reductions in Gross Domestic Product (GDP), elevated unemployment rates, and deflation.