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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