Note AcademyNote Academy
Start

Economics (AS & A Level) · Oct / Nov 2021 · Paper 11 · Question 15

9708Fiscal policy

What did Adam Smith mean by 'economy' when describing his canons of taxation?

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

As printed in the paper

Show the answer

Correct answer: A. The cost of collecting the tax should be low.

Sit this whole paper →More on Fiscal policy

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.