If a Tax System Is Poorly Designed,it May Be Possible

question 41

Multiple Choice

If a tax system is poorly designed,it may be possible to increase:

• A)efficiency without sacrificing equity.
• B)equity while causing inefficiency.
• C)efficiency by sacrificing equity.
• D)equity without causing inefficiency or increase efficiency without sacrificing equity.

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Definitions:

Sales Price

The amount of money for which a product or service is sold to the customer.

Quantity Sold

The total number of units of a product or service sold during a specific period.

Market Forces

Natural economic factors that influence supply, demand, and prices within a marketplace, shaping business dynamics.

Prices

The amount of money required to purchase goods or services, typically determined by factors such as demand, supply, and production cost.