The Efficiency Loss of a Tax Is the Idea That

question 42

Multiple Choice

The efficiency loss of a tax is the idea that

• A) in addition to taking income from the citizenry, taxes also increase the rate of inflation.
• B) taxes cause a decline in output for which marginal benefit exceeds marginal cost.
• C) taxes diminish incentives to work.
• D) government spends dollars less efficiently than do households and businesses.

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Definitions:

Morphemes

The smallest meaningful units in the grammar of a language.

Morphemes

The smallest meaningful units of language that cannot be further divided.

Phonemes

The smallest unit of sound in a language that can distinguish one word from another in a particular spoken language.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, including word order.