While debate over tax policy is complex,how do economists play an important role
A)by arguing for policies that clearly lead to efficiency gains in the economy
B)by shedding light on the tradeoff between efficiency and equity in tax policy
C)by articulating the importance of equity as the most important goal of tax policy
D)by demonstrating that there are no tradeoffs in tax policy: both efficiency and equity can be attained if the tax policy follows basic economic reasoning

Question

Quizplus · Accepted Answer

Economists play an important role in tax policy by shedding light on the tradeoff between efficiency and equity. They analyze and evaluate potential tax policies to determine if they will enhance economic efficiency or if they will reduce equity. This helps policymakers make informed decisions and strike a balance between the two. It is important to note that while economists can inform the debate, ultimately, tax policy decisions involve value judgments and are made by elected officials.

While Debate Over Tax Policy Is Complex,how Do Economists Play