Question 23 Why might a tax be inefficient? aIt distorts behavior, causing the marginal costs to be higher than the marginal benefitsbThe average cost of the tax is too high.cThe tax is politically infeasible.dThe tax does not collect enough revenue.

Answered: Why might a tax be inefficient?

Business

Economics

Why might a tax be inefficient?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 4CQQ

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Question

Question 23

Why might a tax be inefficient?

It distorts behavior, causing the marginal costs to be higher than the marginal benefits

The average cost of the tax is too high.

The tax is politically infeasible.

The tax does not collect enough revenue.

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