The Ideal Tax Should Not Only Raise Revenue Efficiently but Also

question 49

True/False

The ideal tax should not only raise revenue efficiently but also have as few negative effects on economic behavior as possible.

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Definitions:

Retained Earnings

Profits that a company has kept or retained rather than paid out as dividends to shareholders, often reinvested in the business.

Market Price

The contemporary price for purchasing or selling an asset or service.

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which in turn reduces its price, without changing the shareholders' equity.

Common Stock

A type of equity security representing ownership in a corporation, with rights to vote on corporate matters and receive dividends.