Which of the following statements does not describe the classical standard of tax efficiency?
A) An efficient tax is a neutral factor in a free market economy.
B) An efficient tax does not change taxpayer behavior.
C) An efficient tax encourages full employment.
D) An efficient tax favors a laissez-faire economy policy.

Question

Quizplus · Accepted Answer

The classical standard of tax efficiency emphasizes neutrality in the market, meaning it should not significantly alter taxpayer behavior or economic decisions. Encouraging full employment is not a primary characteristic of tax efficiency in classical economic theory; rather, it's more about minimizing distortions in the market.

Which of the Following Statements Does Not Describe the Classical