To minimize inefficiency from taxes on goods,
A) a good with low elasticity of demand should be taxed at the same rate as a good with high elasticity of demand.
B) a good with low elasticity of demand should be taxed at a lesser rate than a good with high elasticity of demand.
C) a good with low elasticity of demand should be taxed at a greater rate than a good with high elasticity of demand.
D) a good with low elasticity of demand should never be taxed.
E) the government should always impose the maximum amount of tax.
Correct Answer:
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Q59: Exhibit 14-2 Q60: Which of the following conditions results in Q61: In designing a tax system, the government Q62: Which of the following are tradeoffs in Q63: According to the ability-to-pay principle, Q65: An efficient tax system should include all Q66: Which of the following violates the ability-to-pay Q67: The deadweight loss of a tax is Q68: Of the two classes of participants in Q69: It does not matter whether a worker
A)those with lower
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