Taxes for the most part are efficient because they retain incentives and align the values that buyers and sellers place on goods and services.

Question

Quizplus · Accepted Answer

Taxes can distort market outcomes because they change the prices that buyers pay and sellers receive, which can lead to a decrease in the quantity of goods traded, thus not always retaining incentives or aligning values as efficiently as in a tax-free market.

Taxes for the Most Part Are Efficient Because They Retain