Most People Agree That Taxes Should Impose as Small a Cost

question 515

True/False

Most people agree that taxes should impose as small a cost on society as possible and that the burden of taxes should be distributed fairly.

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Definitions:

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change in response to a price change.

Recession

A period of declining real GDP, accompanied by lower real income and higher unemployment.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices over a given period of time.

Income Elasticity

A measurement of how the demand for a good or service changes in response to changes in consumers' income levels.