Which of the Following Statements Does Not Describe the Classical

question 48

Multiple Choice

Which of the following statements does not describe the classical standard of tax efficiency?

• A) An efficient tax is a neutral factor in a free market economy.
• B) An efficient tax does not change taxpayer behavior.
• C) An efficient tax encourages full employment.
• D) An efficient tax favors a laissez-faire economy policy.

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Definitions:

High Agreeableness

A personality trait characterized by kindness, empathy, and a cooperative spirit.

High Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, irritability, and sadness.

External Locus

An individual’s belief that their life events and outcomes are largely beyond their control and depend on external factors or forces.

Neuroticism

A personality trait characterized by anxiety, fear, moodiness, worry, envy, frustration, jealousy, and loneliness.