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.

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