Question 41
Public FinanceWhich of the following combination of qualities ensures a good tax system?
- A.Deflationary equity, certainty and convenience
- B.Economy convenience, certainty and equity
- C.Economy, deflationary, inflationary and certainty
- D.Economy, convenience, certainty and inflationary
Show the answer and explanation
Answer: B (Economy convenience, certainty and equity)
Explanation
Adam Smith's canons of taxation are equity, certainty, convenience and economy.