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A Tax Dollar Collected from an Individual or a Business

Question 177

Multiple Choice

A tax dollar collected from an individual or a business costs the private economy more than a dollar because


A) the administration and enforcement of the tax system is costly.
B) record keeping and the other elements of compliance cost are sizable.
C) the taxes will eliminate some productive exchanges (and cause people to undertake some counterproductive activities) .
D) All of the above are correct.

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