Question

Taxes help prices communicate costs and benefits to producers and consumers.

a) true
b) false

Answer 1

The correct answer is the option B: False.

Step-by-step explanation:

To begin with, the taxes are financial charges that are imposed upon a taxpayer with the only purpose to increase the incomes of the government who are mainly taxes. Therefore that the taxes will never be or communicate a benefit nither to producers or consumers in any form or type that they could be. The taxes will only help the government to increase its income and to pay for the expenditures and therefore that it will never help to communicate nither costs or benefits to producers or consumers.