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Author Question: The ________ states that all else equal, taxes that are neutral with respect to economic decisions ... (Read 104 times)

Coya19@aol.com

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Question 1

Excess burden is caused by the fact that taxes


◦ are spent in ways that taxpayers do not support.
◦ distort economic decisions.
◦ generate less revenue than the government spends.
◦ are regressive instead of progressive.

Question 2

The ________ states that all else equal, taxes that are neutral with respect to economic decisions are generally preferable to taxes that distort economic decisions.


◦ principle of neutrality
◦ principle of second best
◦ principle of excess burden
◦ law of tax incidence


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Marked as best answer by Coya19@aol.com on Apr 19, 2019

meganlapinski

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