Multiple choice

Which of the following is not a characteristic of a good tax system?

  1. Equality

  2. Inelasticity

  3. Economy

  4. Convenience

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is not a characteristic of a good tax system The good tax system must be elastic or flexible and not inelastic. It means that the tax system should be such that the rate of tax can be increased or decreased according to the needs of the economy. For instance, at the time of inflation when people have more purchasing power, the tax rate must be increased to reduce their purchasing power and curb inflation.