Which of the Following Describes a Tax That Meets the Standard

question 77

Multiple Choice

Which of the following describes a tax that meets the standard of convenience?

• A)A tax that the government can administer without excessive cost.
• B)A tax that is easy for taxpayers to compute and pay.
• C)A tax that minimizes the opportunity for noncompliance.
• D)All of the above describe a convenient tax.

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Definitions:

Weak Axiom

A fundamental principle in consumer theory that if a consumer chooses bundle A over bundle B when both are affordable, then the consumer will not choose B over A if A's price decreases or B's price increases, all else being equal.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit.

Input Increases

A scenario in production or economics where the quantity of resources used in the production process is increased, potentially affecting outputs.

Price of Output

The market price at which a product or service is sold, determined by various factors including production costs, supply and demand, and market competition.