A Government Program Would Impose a 25-Cent Tax on Each

question 14

Multiple Choice

A government program would impose a 25-cent tax on each pack of cigarettes in order to fund welfare programs.Such a policy

• A)is not a Pareto improvement
• B)is an example of an economically inefficient economy
• C)would clearly not increase tax revenues
• D)is a Pareto improvement
• E)could only occur in a fair economy

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Definitions:

Nonalcoholic Beverage

A drink that contains no alcohol, such as soda, tea, coffee, or juice.

Placebo

A substance or treatment with no active therapeutic effect, often used as a control in testing new drugs.

Premature Infants

Babies born before 37 weeks of gestation, requiring specialized care due to their underdeveloped bodies and organs.

Formula Feedings

The practice of feeding infants and young children milk formula as a substitute for or in addition to breastfeeding.