In the area of taxation, the trade-off between equity and efficiency
a. never occurs since efficient taxes are often the most progressive.
b. is relevant as efficient taxes are often regressive.
c. is irrelevant.
d. is relevant because efficient taxes are often progressive.
b
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If the government implements a tax on the general public to pay for street lighting in one neighborhood,
A) the tax redistributes well-being and the benevolent social planner is not pleased. B) the tax redistributes well-being, but the benevolent social planner is pleased. C) the tax reduces well being and the benevolent social planner is not pleased. D) the tax has no bearing on well-being and the benevolent social planner is indifferent.
If a car salesman is paid a fixed salary, the owner is most likely to see
a. A large volume of sales, with large margins b. A large volume of sales with no margins c. Low to no sales with low margins d. Low sales but with large margins