Multiple Choice
If an excise tax on good x and a lump- sum tax put Ms. Arbitrary on the same indifference curve, she would:
A) have identical budget lines under the two taxes.
B) consume more of x given the excise tax than given the lump- sum tax.
C) prefer the lump- sum tax.
D) consume no more of x given the excise tax than given the lump- sum tax.
Correct Answer:
Verified
Correct Answer:
Verified
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