Suppose You Had to Design an Economic System for a Country

question 23

Essay

Suppose you had to design an economic system for a country that had never existed before. What criteria would you consider to minimize the excess burden of the system of taxation?

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Definitions:

Mark-up

The difference between the cost of a good and its selling price, expressed as a percentage over the cost.

Selling Price

The price at which a product or service is offered to the buyer.

Retailer

A business entity that sells goods or services directly to consumers, acting as the final link in the supply chain.

Profit (Loss)

The financial result of operations, where profit indicates revenue exceeds expenses, and loss indicates expenses exceed revenue.