An income tax put on a person's income raises the same amount of revenue as a quantity tax put on one good that the consumer purchases. Which of the following is true?
An income tax put on a person's income raises the same amount of revenue as a quantity tax put on one good that the consumer purchases. Which of the following is true?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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pls explain in detail with the example under which tax system consumers are better off and why?
I will thump up if explained properly.
![An income tax put on a person's income raises the
same amount of revenue as a quantity tax put on
one good that the consumer purchases. Which of
the following is true?
The income tax is more efficient than
the quantity tax, but consumer is worse
off
The income tax is less efficient than the
quantity tax, but consumer is better off
The income tax is more efficient than
the quantity tax, but producer is worse
off
The income tax is less efficient than the
quantity tax, but producer is better off
None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa87f00c8-f7d7-4c04-802f-1db621cd8623%2F670cd061-3d7e-4827-960c-b9922f787412%2F91uos2j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An income tax put on a person's income raises the
same amount of revenue as a quantity tax put on
one good that the consumer purchases. Which of
the following is true?
The income tax is more efficient than
the quantity tax, but consumer is worse
off
The income tax is less efficient than the
quantity tax, but consumer is better off
The income tax is more efficient than
the quantity tax, but producer is worse
off
The income tax is less efficient than the
quantity tax, but producer is better off
None of the above
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