An Important Objective in Designing a Tax System Is to

question 35

Multiple Choice

An important objective in designing a tax system is to

• A)not intervene in the market economy because this only causes inefficiencies.
• B)raise the maximum possible revenue.
• C)design a system that raises the revenue required for the government's debt- service obligations.
• D)eliminate all deadweight loss.
• E)design a system that minimizes inefficiency for a given amount of revenue raised.

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Definitions:

Psychophysiological Data

Information that reflects the relationship between psychological processes and physiological responses.

EEG

Electroencephalogram, a test that measures electrical activity in the brain and is used to diagnose neurological conditions.

Polygraph

A lie detector test that measures and records several physiological indicators such as blood pressure, pulse, respiration, and skin conductivity while the subject is asked and answers a series of questions.

fMRI

Functional Magnetic Resonance Imaging, a non-invasive neuroimaging technique that measures brain activity by detecting changes associated with blood flow.