The best way to evaluate the effect of a specific tax is _____.

Question

Quizplus · Accepted Answer

To evaluate the effect of a specific tax, it is important to consider it in the context of the entire tax system. This allows for a more comprehensive understanding of its impact compared to simply looking at the tax in isolation. Additionally, considering whether a tax is progressive, regressive, or proportional can be useful, but it is not sufficient on its own as it does not take into account the interaction with other taxes. Therefore, option B is the best choice.

The Best Way to Evaluate the Effect of a Specific