According to the Economist Milton Friedman,the "Least Bad" Tax Is

question 222

Multiple Choice

According to the economist Milton Friedman,the "least bad" tax is a tax on

• A)income received from profits and interest.
• B)labor income.
• C)the unimproved value of land.
• D)the value of land including the improvements to the land.

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Definitions:

Marginal Revenue

The additional income that a business receives from selling one more unit of a good or service.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs.

Short-Run Equilibrium

A state in which market supply and demand balance out at current prices, leading to an economic situation where no incentive exists for prices to change.

Allocative Efficiency

A state of resource distribution where it is impossible to make one individual better off without making someone else worse off.