If a Tax System Is Well Designed

question 193

Multiple Choice

If a tax system is well designed:

• A) it maximizes efficiency.
• B) it maximizes fairness.
• C) efficiency can be improved only by making the system less fair.
• D) it maximizes efficiency and equity.

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Definitions:

Problems

Challenges or difficulties that need to be solved or addressed.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to bring consistency to accounting language, practices, and statements globally.

Used

Pertains to items or assets that have been utilized or consumed, often in contrast to those that are new or unused.

Country

A distinct territorial body or political entity recognized as an independent nation.