During Recent Elections,consumer Groups in Various States Attempted to Get

question 156

Multiple Choice

During recent elections,consumer groups in various states attempted to get the sales tax on all medicines and drugs removed.They argued that such a tax is severely regressive.What is the economic interpretation of their statement?

• A)The poor get ill more often than do the rich.
• B)The poor pay higher prices for medicine and drugs than do the rich.
• C)The poor pay a higher percentage of their income in taxes on medicine and drugs than do the rich.
• D)All consumers pay too much money for medicine and drugs.
• E)The sales tax discourages the poor from seeking medical treatment.

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Definitions:

Active

Engaged in action; being in a state of movement, function, or operation.

Destructive

Causing great and irreparable harm or damage.

Distributive Strategy

Approach used to decide how resources or rewards are shared or distributed among group members.

Conflict Management

The practice of identifying and addressing disputes in a fair, effective, and reasonable manner to prevent escalation.