Economic Efficiency Indicates That

question 7

Multiple Choice

Economic efficiency indicates that

• A) if something is worth doing, you should do it as well as humanly possible.
• B) all pollution should be eliminated.
• C) automobiles should be made as safe as possible
• D) it nearly always makes sense to stop an activity well before perfection is achieved.

---

Definitions:

Taxable Income

The portion of an individual's or corporation's income upon which taxes are assessed, after allowances for deductions and exemptions.

Total Tax

The combined amount of all taxes imposed by different levels of government on individuals or businesses.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressed as a percentage.

Taxable Income

The amount of an individual's or a corporation's income used to determine how much tax they owe, after exemptions and deductions are factored in.