"For Goods That Are Unrelated in Consumption,efficiency Requires That Tax

question 10

Multiple Choice

"For goods that are unrelated in consumption,efficiency requires that tax rates be inversely proportional to elasticities." This is the definition of

• A) the benefits-received principle.
• B) the Ramsey Rule.
• C) the second best principle.
• D) the inverse elasticity rule.

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Definitions:

Eating

The act of consuming food in order to provide nutritional support to the body.

Abraham Maslow

A renowned American psychologist who developed the hierarchy of needs theory, which suggests psychological well-being is based on meeting basic human needs.

Hierarchy

Hierarchy is a system or organization in which people or groups are ranked one above the other according to status or authority.

Needs

Fundamental requirements that individuals must fulfill to achieve basic physiological and psychological well-being.