Which of the Following Statements Is True

question 23

Multiple Choice

Which of the following statements is true ?

• A) Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a smaller burden on the poor than the rich.
• B) Government failure may occur if voters are rationally ignorant.
• C) Special-interest group political pressure results only from programs for which benefits outweigh costs.
• D) Majority-rule voting and benefit-cost analysis result in the same projects being undertaken.

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Definitions:

Minimum Wage

The lowest remuneration that employers can legally pay their workers, a rate which is set by government legislation.

Unemployment Rate

The segment of the labor force currently without employment but making efforts to find work.

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

Aggregate Supply

The aggregate amount of products and services created in an economy at a specific price level during a particular time frame.