Which statement is CORRECT?A) If the government can make the tax system fairer without sacrificing efficiency,it should do so to maximize equity.B) If the government can make the tax system fairer without sacrificing efficiency,then the existing tax system is perfectly designed.C) There is no trade-off between equity and efficiency in the tax system.D) If the government can make the tax system fairer without sacrificing efficiency,it should seek to maximize equity at the expense of efficiency.

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sadie wylie · Accepted Answer

Final Answer : A, Explanation :  This statement acknowledges the possibility of trade-offs between equity and efficiency, while also suggesting that if the government can achieve greater equity without sacrificing efficiency, it should do so. This represents a balanced approach to tax policy that seeks to address both equity concerns and efficiency goals.

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