Regarding taxation and efficiency, which of the following statements is not true?
A)Many inefficiencies arise from taxation.
B)Many burdens arise from taxation.
C)Some taxes lead to greater efficiency.
D)All of the above statements are true.

Question

Regarding taxation and efficiency, which of the following statements is not true?
A)​Many inefficiencies arise from taxation.
B)​Many burdens arise from taxation. 
C)​Some taxes lead to greater efficiency.
D)​All of the above statements are true.

Quizplus · Accepted Answer

All the statements are true: taxation can cause inefficiencies and burdens, but some taxes can also lead to greater efficiency by correcting market failures.

Regarding Taxation and Efficiency, Which of the Following Statements Is