Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

In Adam Smith’s canons of taxation, what was meant by the term ‘economy’?

  • AThe cost of collecting the tax should be low.
  • BThe tax should be easy to pay.
  • CThe tax should have a neutral effect on the use of resources.
  • DThe tax should have a positive effect on aggregate supply.

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