Multiple Choice
Imagine an excise tax and a lump- sum tax which would raise the same revenue from an individual Ms. Arbitrary who has convex preferences. If she was given a choice between the two taxes, then:
A) she would prefer the excise tax.
B) she would be indifferent between the two taxes.
C) we cannot know Ms. Arbitrary's preferences regarding the taxes.
D) she would prefer the lump- sum tax.
Correct Answer:
Verified
Correct Answer:
Verified
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