Asked by Kailyn Holmes on May 14, 2024
Verified
A tax system _____ when taxes are distributed fairly.
A) is efficient
B) is equitable
C) has no deadweight loss
D) is in equilibrium
Equity
The concept of fairness in economics, which may refer to ownership interest in a company (as in stockholders' equity) or to a principle of justice and fairness in the distribution of wealth and resources.
Deadweight Loss
A societal expense arising from market inefficiency, happening when there is a mismatch between supply and demand.
Equilibrium
A state in a market where the supply of a good matches its demand, resulting in stable prices.
- Understand the concepts of tax equity and tax efficiency.
Verified Answer
Learning Objectives
- Understand the concepts of tax equity and tax efficiency.
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