A tax is efficient if
A) it is based on profits earned and not on wages.
B) it imposes a small excess burden relative to the revenue it raises.
C) it encourages saving and investment.
D) individuals with the lowest incomes pay proportionately lower taxes than individuals with the highest incomes.
B
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When a good is rival in consumption,
a. one person's use of the good diminishes another person's ability to use it. b. people can be prevented from using the good. c. an unlimited number of people can use the good at the same time. d. everyone will be excluded from obtaining the good.
An asset-price bubble is caused by:
A. people buying assets because they believed prices would keep going up and they'd be able to sell for a profit. B. fads that make owning a certain asset fashionable. C. severe inflation within a short period of time. D. the increase in the value of durable goods when the economy is experiencing low inflation.