One of the three basic principles of a sound tax system is “fiscal adequacy”. Define this term, explain why it is important to a sound tax system, and give an example of how it works. 2. There are seven essential characteristics of tax. Choose two. Define and discuss each, explain how it works and give an example.

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
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1. One of the three basic principles of a sound tax system is “fiscal adequacy”. Define this term, explain why it is important to a sound tax system, and give an example of how it works.

2. There are seven essential characteristics of tax. Choose two. Define and discuss each, explain how it works and give an example.

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