Which of the following statements is FALSE about the issues faced by the government when contemplating a tax?

A) Consideration must be given to how tax rates relate to the amount actually received.
B) Consideration must be given to how taxes influence market prices.
C) Consideration must be given to how taxes influence equilibrium quantity.
D) Consideration must be given to the amount of funds the government will be receiving from the transfer payments paid by the public to the government.


Answer: D

Economics

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