Taxation can promote good social policy while minimizing economic inefficiency.

Name: Taxation can promote good social policy while minimizing economic inefficiency.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Taxation can be used to incentivize desirable behavior or discourage undesirable behavior, which can promote good social policy. However, it is important for tax policies to be designed in a way that minimizes economic inefficiency, such as reducing deadweight loss and avoiding unintended consequences.

Taxation Can Promote Good Social Policy While Minimizing Economic Inefficiency