Economics 9708 · AS & A Level · Short-run costs

Short-run costs — practice question

Which statement is most likely to explain why a government chooses to raise the highest rates of tax on personal income?

  • AIt expects total tax revenue to be unaffected by the policy change.
  • BIt is concerned about the possibility of emigration by some high earning individuals.
  • CIt regards equity considerations as being more important than efficiency ones.
  • DIt wishes to switch the emphasis of its tax system from direct to indirect taxation.

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