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A Tax Is Efficient If It Imposes a Small Excess

question 121

True/False

A tax is efficient if it imposes a small excess burden relative to the tax revenue it raises.


Definitions:

Treatment Variable

A variable manipulated by an experimenter in a study to observe its effect on the dependent variable.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

Validity

The extent to which a test or instrument measures what it is intended to measure, indicating the accuracy of the test.

Research Process

A systematic procedure that involves the collection, analysis, and interpretation of data to answer a question or solve a problem.

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