Explain the concept of efficiency as it relates to taxation.
What will be an ideal response?
A tax is said to be efficient if it has used every available opportunity to make someone better off without making someone else worse off. Taxes are almost always inefficient, but some taxes are more inefficient than others.
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Which of the following is true about outsourcing and labor migration:
A. Unrestricted out-sourcing and unrestricted labor migration result in the same wage outcomes in tradable goods markets (as long as there are no barriers to trade). B. Under outsourcing, pressures for wage equalization arise from shifts in labor demand curves. C. Under labor migration, pressures for wage equalization arise from shifts in labor supply curves. D. Both (a) and (c) E. Both (b) and (c) F. Both (a) and (b) G. All of the above H. None of the above
Which statement best explains convergence?
a. Some low-income economies around the world have shown a pattern of convergence, in which their economies grow faster than those of middle-income countries. b. Some middle-income economies around the world have shown a pattern of convergence, in which their economies grow faster than those of low-income countries. c. Some low-income and middle-income economies around the world have shown a pattern of convergence, in which their economies grow faster than those of high-income countries. d. Some high-income economies around the world have shown a pattern of convergence, in which their economies grow faster than those of low-income and middle-income countries.