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    Business
  3. Study Set
    Public Finance in Canada
  4. Exam
    Exam 16: Efficient and Equitable Taxation
  5. Question
    "For Goods That Are Unrelated in Consumption, Efficiency Requires That
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"For Goods That Are Unrelated in Consumption, Efficiency Requires That

Question 2

Question 2

Multiple Choice

"For goods that are unrelated in consumption, efficiency requires that tax rates be inversely proportional to elasticities." This is the definition of


A) the Ramsey Rule.
B) the benefits-received principle.
C) the inverse elasticity rule.
D) the Corlett-Hague rule.

Correct Answer:

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