14. The principle of second best holds that a tax that distorts economic decisions does not necessarily

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14. The principle of second best holds that a tax that distorts economic decisions does not necessarily impose an excess burden. If previously existing distortions or externalities exist, such a tax may actually improve efficiency

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Principles Of Microeconomics

ISBN: 9780691150093

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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