Many economists argue that items such as food and clothing should be exempt from sales tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over
A) economic stability.
B) economic growth.
C) equity.
D) efficiency.

Question

Quizplus · Accepted Answer

The argument is motivated by concerns over equity, as it focuses on the fairness of the tax system in terms of its impact on different income groups, particularly aiming to reduce the burden on low-income individuals who spend a larger portion of their income on essentials.

Many Economists Argue That Items Such as Food and Clothing