If a Tax Was Instituted Such That Every Dollar Collected

question 165

Multiple Choice

If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households

• A) efficiency and equality of incomes would both decrease.
• B) equality of incomes would increase but efficiency would decrease.
• C) efficiency would increase but equality of incomes would decrease.
• D) efficiency and equality of incomes would both increase.

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Definitions:

Agreement Phase

A stage in negotiations or discussions where all parties involved reach a mutual understanding or commitment.

Coalitions

Coalitions are alliances or partnerships formed between individuals or groups with the aim of achieving specific objectives or addressing common concerns.

Multiparty Negotiations

discussions or bargaining processes involving more than two parties or groups to reach an agreement.

Greater Strength

Refers to the higher level of power or influence one party can have in a negotiation or conflict situation.