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

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

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter16: The Public Sector

Section: Chapter Questions

Problem 17SQ

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