Question

In choosing the form of a tax, there is often a tradeoff between:

a. profits and revenues.
b. allocative and productive efficiency.
c efficiency and fairness.
d fairness and profits.

Answer 1

The correct answer to the following question will be Option C (Efficiency and fairness).

Step-by-step explanation:

• In many disciplines across the social sciences, the concept of a trade-off between equality and efficiency and is pervasive. Also, an inaccurate notion of that well-known dilemma is indeed an essential part of politicians and policy-makers discourse.
• Philosophical experiments of the concept have indeed deflated the theoretical unity of most of its iterations, whereas the existing literature attempting to test the empirical relationship between equality and growth showed conflicting results.
• However, the scientific status of the notion of a trade-off between equality and efficiency is a matter of discussion.

Therefore, Option C is the right answer.