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Senator Fujita Argues That Replacing the Federal Income Tax with a National

Question 138

Multiple Choice

Senator Fujita argues that replacing the federal income tax with a national sales tax would increase the level of output. Senator Watson objects that this policy would benefit the rich at the expense of the poor.


A) Both senators' arguments are primarily about equality.
B) Both senators' arguments are primarily about efficiency.
C) Senator Fujita's argument is primarily about equality, while Senator Watson's argument is primarily about efficiency.
D) Senator Fujita's argument is primarily about efficiency, while Senator Watson's argument is primarily about equality.

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