Which of the Following Statements Is Correct

question 398

Multiple Choice

Which of the following statements is correct?

• A) The U.S. federal government collected a higher percentage of income in taxes in the early 1900s than in the early 2000s.
• B) The U.S. federal government collects a higher percentage of income in taxes than many European countries, including France and Germany.
• C) The U.S. federal government collects a lower percentage of income in taxes than many developing countries, including Mexico and India.
• D) The U.S. federal government collects a similar percentage of income in taxes as Brazil and Japan.

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Definitions:

Competitive Market

A market structure where many firms offer products or services that are similar, allowing consumers to find substitutes easily.

Efficient Price

A market price that reflects all available information and results in an allocation of resources that maximizes overall utility.

Marginal Cost

The incurred cost from generating one more unit of a product or service.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.