Which Statement Is an Argument Against a Tax System That

question 81

Multiple Choice

Which statement is an argument against a tax system that encourages savings?

• A) that individuals know better that the government how much to save
• B) that saving is not an important determinant of a nation's ability to produce output
• C) that rich people would bear the burden of such a tax system
• D) that such a tax system would increase inequality

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Definitions:

Oligopoly

A market setup where just a few companies dominate the market, resulting in minimal competition.

Concentration Ratio

A measure used in economics to assess the extent of market control held by the top firms within an industry, indicating the degree of market competition.

Brand-Name Hotel

A hotel that is part of a famous or widely recognized chain, often distinguished by a well-known trademark or brand identity.

Concentration Ratio

An indicator that measures the total market share of the top firms in an industry, used to assess the level of market concentration.