The principle of neutrality states that, all else equal
A) taxes that are neutral with respect to economic decisions are generally preferable to taxes that distort economic decisions.
B) taxes that distort economic decisions are generally preferable to taxes that are neutral with respect to economic decisions.
C) taxes that are neutral with respect to economic decisions are equally preferable to taxes that distort economic decisions.
D) in the long run, all taxes are essentially neutral with respect to economic decisions.
Correct Answer:
Verified
Q170: The amount by which the burden of
Q171: There would be _ excess burden from
Q172: Refer to Scenario 19.3 below to answer
Q173: The total burden of a tax is
Q174: Taxes levied on sharply defined bases tend
Q176: Refer to Scenario 19.4 below to answer
Q177: Refer to Scenario 19.4 below to answer
Q178: A tax that distorts an economic decision
Q179: Refer to Scenario 19.3 below to answer
Q180: Refer to Scenario 19.4 below to answer
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