Which of the Following Statement Is/are Included in Adam Smith's

question 30

Multiple Choice

Which of the following statement is/are included in Adam Smith's four requirements for a good tax system?
I.Changes in the tax law should be made as needed to raise revenue and for proper administration.
II.A tax should be imposed in proportion to a taxpayer's ability to pay.
III.A taxpayer should be required to pay a tax when it is most likely to be convenient for the taxpayer to make the payment.
IV.The government must collect taxes equal to it's expenses.

• A)Statements I and II are correct.
• B)Statements I and IV are correct.
• C)Statements II and III are correct.
• D)Statements II and IV are correct.
• E)Statements III and IV are correct.

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Definitions:

Per-worker Production Function

A mathematical representation showing how the amount of output produced per worker varies with the amount of capital or other inputs used per worker.

Quantity of Capital

The total assets, both physical (such as machinery and buildings) and financial, that individuals or businesses use to produce goods and services.

Outward Rotation

An expansion of the production possibilities frontier, indicating an economy's increased capacity to produce goods and services.

Technology Improvement

Enhancements in technology that lead to more efficient production processes, higher quality products, or new products and services.