Which of the Following Statements Is Concerned with Equity Rather

question 66

Multiple Choice

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

• A) Almost all taxes create some amount of deadweight loss.
• B) Excise taxes tend to raise prices for consumers and reduce sales for firms.
• C) Tax rates on the wealthy are too low and should be raised.
• D) The incidence of a tax does not depend on who actually pays it.
• E) Taxes generate revenues that governments spend on services.

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Definitions:

U.S. Assets

Assets located within the United States that might include properties, stocks, bonds, and other financial instruments.

Foreign Exchange Market

A global decentralized or over-the-counter market for trading currencies, determining exchange rates for every currency.

Net Exports

The difference between a country's total value of exports and total value of imports, indicating if a country is in a trade surplus or deficit.

Surplus

A situation in which quantity supplied is greater than quantity demanded.