To minimize dead weight loss resulting from taxation, a. tax revenue should be maximized. b. tax rates should alternate between 0 and higher rates every other year. c. tax rates should be kept stable over time. d. tax rates should increase in times of need and reduced in other periods.
To minimize dead weight loss resulting from taxation, a. tax revenue should be maximized. b. tax rates should alternate between 0 and higher rates every other year. c. tax rates should be kept stable over time. d. tax rates should increase in times of need and reduced in other periods.
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.11P
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To minimize dead weight loss resulting from
a. tax revenue should be maximized.
b. tax rates should alternate between 0 and higher rates every other year.
c. tax rates should be kept stable over time.
d. tax rates should increase in times of need and reduced in other periods.
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