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    Principles of Microeconomics Study Set 10
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    Exam 12: The Design of the Tax System
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    An Optimal Tax Is One That Minimizes the
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An Optimal Tax Is One That Minimizes the

Question 63

Question 63

Multiple Choice

An optimal tax is one that minimizes the


A) external benefit.
B) total deadweight loss from the tax.
C) income taxes.
D) horizontal equity.

Correct Answer:

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