From the standpoint of efficiency,imposing a tax on the income from what type of resource is best because it creates the least inefficiency?

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A tax on a resource with a fixed supply would create the least inefficiency because it would not affect the supply of the resource. Resources with perfectly elastic supply or demand are highly responsive to price changes and imposing a tax on their income would highly distort the market. Taxing a resource that earns a high reward or a low reward may affect the incentives of individuals to invest in that resource.

From the Standpoint of Efficiency,imposing a Tax on the Income