Examlex
Which of these is mismatched?
Second Best
Refers to a situation wherein the optimal condition cannot be achieved, and the best possible alternative under the given restrictions is adopted.
Previously Existing Distortions
Inefficiencies or imperfections already present in a market before a new policy or change was implemented.
Distortionary Tax
A tax that causes people to alter their behavior and economic decisions from what they would have chosen in the absence of the tax.
Principle of Neutrality
The concept that certain measures, such as fiscal policies, should be designed to have a neutral effect on economic choices and competition.
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