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Which of the Following Statements Is Concerned with Equity Rather

Question 38

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.

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