While Regressive Taxes Are Considered Inequitable,cigarette Taxation Is Popular Because

question 9

Multiple Choice

While regressive taxes are considered inequitable,cigarette taxation is popular because _____.

• A)it is a sumptuary tax
• B)it mainly hurts tobacco farmers in a few Southern states
• C)in a lifetime sense it is a progressive tax
• D)people are inconsistent

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Definitions:

Typical Firm

A typical firm refers to an average or representative entity in an industry characterized by the industry's common practices, production processes, and competitive strategies.

Consumer Surplus

The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Monopolistically Competitive Price

Refers to the price level set by firms in a monopolistically competitive market, where many firms sell products that are differentiated from one another and not perfect substitutes.

Price Increases

A rise in the cost of goods or services, often measured by the rate of inflation.