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Which of the following statements about the income effect of an income tax rate increase is true? The income effect is theoretically stronger for a

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Which of the following statements about the income effect of an income tax rate increase is true? The income effect is theoretically stronger for a family's secondary wage earner than for the family's primary wage carner. Both the income effect is theoretically stronger for low-income taxpayers than for high-Income taxpayers and the income effect motivates individuals to find ways to increase their before-tax income are true. The income effect is theoretically stronger for low-income taxpayers than for high-income taxpayers. The income effect motivates individuals to find ways to increase their before-tax income. Question 6 10 pts Which of the following taxes is most convenient for individuals (purchasers) to pay? Federal income tax Real property tax Sales tax Use tax D Question 7 10 pts Government Llevies a 4% excise tax on restaurant meals. It is considering reducing the rate to 2% on meals served in restaurants that ban cigarette and cigar smoking and to increase the rate to 5% in restaurants that allow smoking. Which of the following statements is true? The rate change would improve the neutrality of the excise tax Both the rate change would improve the convenience of the tax and the rate change is intended to affect social behavior are true, The rate change is intended to affect social behavior The rate change would improve the convenience of the tax

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