In Most Cases,taxes Reduce Economic Efficiency Because

question 62

Multiple Choice

In most cases,taxes reduce economic efficiency because

• A) they lower prices for consumers and cause firms to suffer.
• B) they increase firms' profits at the expense of consumers.
• C) taxes are perceived as unfair by some taxpayers.
• D) the government often spends tax revenues on programs that some voters don't like.
• E) they reduce consumer surplus and producer surplus.

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