An Efficient Tax System Should Include All the Following Except

question 152

Multiple Choice

An efficient tax system should include all the following except

• A)minimum deadweight losses.
• B)a low marginal tax rate.
• C)minimal wasting of resources.
• D)taxing at a rate that is positively related to price elasticity of demand.
• E)taxing at a rate that is inversely related to price elasticity of supply.

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Definitions:

Direct Labor

The wages paid to workers directly involved in the production of products or the delivery of services.

Planning Budget

A budget prepared at the beginning of the budgeting period, reflecting expected revenues and expenses based on forecasted levels of operations.

Personnel Expenses

Costs associated with employees, including wages, benefits, and taxes.

Planning Budget

A budget that outlines the income, expenses, and goals of a company or project within a specific time period, serving as a financial roadmap.