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Author Question: What circumstances favor nonneutral taxes? (Read 58 times)

torybrooks

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Question 1

The principle of second best states that


◦ if previously existing distortions exist, a distortionary tax may actually improve efficiency.
◦ the broader based the tax, the less distortionary it is.
◦ the more inelastic the demand for a product, the less distortionary a tax on the product would be.
◦ taxes should be constructed so that they are neutral.

Question 2

What circumstances favor nonneutral taxes?


◦ only the presence of externalities
◦ only the presence of other distortionary taxes
◦ both the presences of externalities and other distorting taxes
◦ both inelastic demand and the presence of externalities


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Marked as best answer by torybrooks on Apr 19, 2019

vboyd24

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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torybrooks

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)


olderstudent

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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