Criteria that economists use in selecting a tax system include:
A) ability to pay and benefits received.
B) fairness.
C) only benefits received.
D) only ability to pay.

Question

Quizplus · Accepted Answer

Economists consider the ability to pay and benefits received when selecting a tax system. A tax system should distribute the tax burden in a way that reflects individuals' ability to pay based on their income or wealth. At the same time, it should provide benefits to those who pay taxes in a fair and equitable manner. Therefore, a tax system that takes into account both ability to pay and benefits received is the best choice.

Criteria That Economists Use in Selecting a Tax System Include