Effectiveness Is the Ratio of Benefits to Cost

question 26

True/False

Effectiveness is the ratio of benefits to cost.

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Definitions:

Tax Increase

A tax increase refers to a governmental decision to raise the amount of tax imposed on goods, services, or income.

Consumers Pay

Consumers pay represents the purchasing activities conducted by individuals or households for goods and services for personal use.

Tax Imposed

Levies set by government authorities on various forms of income, consumption, or transactions, used to fund public services and infrastructure.

Deadweight Loss

An economic inefficiency that occurs when the total welfare in a market is not maximized, resulting from distortions such as taxes, subsidies, or monopolies.