A Tax Is Efficient If

question 253

Multiple Choice

A tax is efficient if

• A)individuals with the lowest incomes pay proportionately lower taxes than individuals with the highest incomes.
• B)it is based on profits earned and not on wages.
• C)it encourages saving and investment.
• D)it imposes a small excess burden relative to the revenue it raises.

---

Definitions:

Colorimetric PH Indicator

A chemical compound that changes color in response to changes in pH, used to determine the acidity or alkalinity of a solution.

Neutral Substance

A chemical compound that is neither acidic nor basic in nature, often having a pH level of around 7.

Acidic Substance

A substance with a pH less than 7, which donates hydrogen ions when dissolved in water.

Basic Substance

A fundamental material or compound that is essential for a particular biological function or structure; often refers to simple, key molecules in biochemistry.