Multiple Choice
The efficiency loss of a tax is the idea that
A) in addition to taking income from the citizenry, taxes also increase the rate of inflation.
B) taxes cause a decline in output for which marginal benefit exceeds marginal cost.
C) taxes diminish incentives to work.
D) government spends dollars less efficiently than do households and businesses.
Correct Answer:
Verified
Correct Answer:
Verified
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