During Recent Elections, Consumer Groups in Various States Attempted to Get

question 203

Multiple Choice

During recent elections, consumer groups in various states attempted to get the sales tax on all medicines and drugs removed.They argued that such a tax is "severely regressive." What is the economic interpretation of their statement?

• A)The poor get ill more often than do the rich.
• B)The poor pay higher prices for medicine and drugs than do the rich.
• C)The poor pay a higher percentage of their income for medicine and drugs than do the rich.
• D)All consumers pay too much money for medicine and drugs.
• E)The sales tax discourages the poor from seeking medical treatment.

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Definitions:

Social Policies

Formulated strategies and measures implemented by governments to address social issues and improve the welfare of citizens.

Scientifically Evaluated

The process of examining something through systematic observation, experiment, and reasoning to understand it accurately.

Theodore Roosevelt

The 26th President of the United States (1901-1909), known for his progressive policies, leadership in conservation, and role in negotiating the end of the Russo-Japanese War, which won him the Nobel Peace Prize.

Gifford Pinchot

An American forester and politician known for his advocacy of the sustainable management of natural resources.