Which aspect of taxation involves normative economics?

CA Foundation · Business Economics · MTP · September 2026
Which aspect of taxation involves normative economics?
(A) A. the incidence of (i.e., who actually pays for) the tax
(B) B. the effect of the tax on incentives to work
(C) C. the "fairness" of the tax
(D) D. all of the above

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. the "fairness" of the tax

Topics: Nature & Scope of Business Economics

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