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$8.$ Problems and Applications Q$3$

Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not.

Taxing food and clothing is $$ efficient than taxing many other goods because it is likely to generate a $$ deadweight loss.

True or False: Excluding food and clothing from the sales tax is more equitable because a greater portion of the expenses of the poor are thereby exempted from taxation.

True

False

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