A Poorly Designed Tax Policy Tends to Be Accompanied by Which

question 57

Multiple Choice

A poorly designed tax policy tends to be accompanied by which of the following costs?

• A)the transfer of money from the government to the taxpayer
• B)marginal rates
• C)large administrative costs
• D)equity penalties

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Definitions:

Bernoulli Experiment

A random experiment with exactly two possible outcomes, often termed success and failure.

Probability Density Function

A Probability Density Function (PDF) is a function that describes the relative likelihood for a continuous random variable to take on a given value.

Expected Value

A statistical measure that calculates the average outcome of a random variable after many repetitions of an experiment.

Random Variable

A variable that can take numeric values, which are the results of a random event.