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Suppose a Local Government Decides to Increase Taxes on Its

Question 27

Multiple Choice

Suppose a local government decides to increase taxes on its residents and use that money to provide meals to each individual in the community.The scheme provides each individual with a small frozen dinner.Compared to a voucher system that allows individuals to purchase meals at a private restaurant,the frozen dinner scheme:


A) will decrease both quantity and quality of meals consumed.
B) will not affect the quality or quantity of meals.
C) will give individuals greater variety and choice of meals.
D) will increase both quantity and quality of meals consumed.

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