Which aspect of taxation involves normative economics?
A)the incidence of the tax
B)the fairness of the tax
C)the effect of the tax on incentives to work
D)all of the above

Question

Quizplus · Accepted Answer

Normative economics involves judgments and opinions about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal. The fairness of a tax is a normative issue because it involves value judgments about whether the tax system is equitable.

Which Aspect of Taxation Involves Normative Economics