Which of the following statements are true: O A gasoline tax can be fair in the sense of the benefits principle, and it can be efficient as a pigovian tax. O Changing the income tax system form progressive to proportional makes the tax more efficient, but less equitable. ONo matter what the circumstances, taxes always create deadweight losses. Taxes that promote equity, such as a progressive income tax, usually do so at the expense of efficiency.
Which of the following statements are true: O A gasoline tax can be fair in the sense of the benefits principle, and it can be efficient as a pigovian tax. O Changing the income tax system form progressive to proportional makes the tax more efficient, but less equitable. ONo matter what the circumstances, taxes always create deadweight losses. Taxes that promote equity, such as a progressive income tax, usually do so at the expense of efficiency.
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 5QR
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