The Average Cost of the Distortion Created by Taxes

question 37

Multiple Choice

The average cost of the distortion created by taxes

• A)increases proportionately with the tax rate.
• B)is lower when the tax rate is constant than when it fluctuates.
• C)is higher when the tax rate is constant than when it fluctuates.
• D)equals the square root of the tax rate.

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Definitions:

Junk Food

Food that is high in calories but low in nutritional content.

Obesity

A medical condition where excess body fat accumulates to the extent that it may have a negative effect on health, leading to increased risks of various diseases and health problems.

Genetic Predisposition

The inherited genetic pattern that increases the likelihood of developing certain diseases or conditions.

Poor Eating Habits

Patterns of eating that include unhealthy choices and behaviors, leading to poor nutritional intake and possible health issues.