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 new sales tax typically increases prices.
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.
Correct Answer:

Verified
Correct Answer:
Verified
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