Which of the Following Statements Is Not True

question 171

Multiple Choice

Which of the following statements is not true?

• A)Taxes often create inefficiency but can increase equity.
• B)Tax policy is often a balance between equity and efficiency.
• C)Some taxes lead to greater efficiency.
• D)Taxes are about efficiency not equity.

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Definitions:

Pure Monopolist

A market situation where a single seller controls all the supply of a product or service with no close substitutes.

Imperfectly Competitive

Describes market structures that do not meet the conditions of perfect competition, often characterized by the presence of market power held by firms.

Nondiscriminating Monopolist

A monopolist that charges a single price for all units of a product sold, rather than engaging in price discrimination among different consumers.

Perfectly Elastic

Perfectly elastic describes a situation in which the quantity demanded or supplied can change infinitely in response to any change in price.