Answered: If a tax intended primarily to generate…

If a tax intended primarily to generate government revenue also causes substitution effects, the tax is most likely to increase economic efficiency. True or false? Why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If a tax intended primarily to generate government revenue also causes substitution effects, the tax
is most likely to increase economic efficiency. True or false? Why?

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