A Tax Meets the Standard of Efficiency If It Generates

question 66

True/False

A tax meets the standard of efficiency if it generates enough revenue to pay for the public goods and services provided by the government.

---

Definitions:

Planning Budget

A budget created for a specific period in the future, outlining expected revenue, expenses, and resource needs.

Vehicle Operating Cost

The total expense associated with maintaining and running a vehicle, including fuel, maintenance, insurance, and depreciation.

Snow-Day

A colloquial term typically referring to a day when schools or businesses are closed due to excessive snowfall that impedes travel and regular operations.

Other Expenses

Expenditures that are not directly related to the production of goods or services, such as administrative and selling expenses.