Suppose the government taxes the rich to distribute money to the poor.Which of the following is an example of an efficiency loss?
A) Rich people take home less of the money from their jobs because of the tax.
B) Rich people don't work as hard because of the tax.
C) Poor people are better off because of the redistribution.
D) Poor people work just as hard because they still need to make ends meet.
Correct Answer:
Verified
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