Which of the Following Statements Is Concerned with Equity Rather

question 80

Multiple Choice

Which of the following statements is concerned with equity rather than efficiency?

• A) Imposing a tax on a good reduces the incentive to buy that good.
• B) The burden of a sales tax is typically shared by consumers and stores.
• C) Deadweight loss is the lost social welfare from a tax.
• D) Tax rates on middle-class households are too high and should be reduced.
• E) Taxes cause producers and consumers to lose surplus.

---

Definitions:

Use of Fear

Employing fear as a motivational tool or in persuasion, often to prompt action or change in behavior.

Cognitive-behavioral Theory

A psychological approach emphasizing the role of thought processes in shaping behavior and emotions, often used in therapy to address dysfunctional attitudes and behaviors.

Psychodynamic

A psychological perspective that emphasizes unconscious processes and the influence of early childhood experiences on later behavior and personality development.

Advertisement Wear-out

The phenomenon where repeated exposure to the same advertisement over time leads to decreased effectiveness and consumer boredom.