When Different Consumers Pay Different Amounts of Taxes,Ricardian Equivalence May

question 1

Multiple Choice

When different consumers pay different amounts of taxes,Ricardian equivalence may fail because

• A) alternative ways of collecting the same tax revenue can affect the distribution of income.
• B) consumers can become jealous of one another.
• C) such differences in taxes create credit market imperfections.
• D) higher taxes on more talented people may be politically popular.

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Moving Magma

The flow of molten rock beneath or on the Earth’s surface, which can create volcanic eruptions when it reaches the surface.

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A seismic event occurring in Indonesia, a region prone to earthquakes due to its position on the Pacific Ring of Fire.

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The world's third-largest ocean, bounded by Asia, Africa, and Australia, known for its significant impact on climate and weather patterns.

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The area where the land meets the ocean on the eastern side of a landmass.