A Tax Is Efficient If

question 253

Multiple Choice

A tax is efficient if

• A)individuals with the lowest incomes pay proportionately lower taxes than individuals with the highest incomes.
• B)it is based on profits earned and not on wages.
• C)it encourages saving and investment.
• D)it imposes a small excess burden relative to the revenue it raises.

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Definitions:

Industrialized World

Regions or countries that have undergone industrialization, characterized by significant technological advancement and economic development.

Sense Of Identity

An individual’s distinct, persistent sense of self, encompassing personal beliefs, characteristics, and values.

Adolescence

The transitional period between childhood and adulthood, characterized by significant physical, psychological, and social changes.

Erikson

A developmental psychologist famous for his theory on the psychosocial development of humans, consisting of eight stages from infancy to adulthood.