The Two Main Competing Goals in the Design of a Tax

question 19

Multiple Choice

The two main competing goals in the design of a tax system are

• A)efficiency and productivity.
• B)efficiency and equity.
• C)efficiency and the elimination of distortions.
• D)applying the direct and excess burden of taxes evenly.
• E)growth and productivity.

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Definitions:

SSE

Stands for the Sum of Squared Errors, a measure used in statistics to describe the discrepancy between the data and an estimation model.

Critical Value

A point on the scale of the test statistic beyond which the null hypothesis is rejected.

Independent Variables

Variables in an experiment or model that are manipulated or changed to assess their effect on dependent variables.

Degrees Of Freedom

A parameter of the t distribution. When the t distribution is used in the computation of an interval estimate of a population mean, the appropriate t distribution has n − 1 degrees of freedom, where n is the size of the sample.