Policymakers use taxes

Asked by maham237 @ 27/04/2021 in Business viewed by 321 People

a. to raise revenue for public purposes but not to influence market outcomes.
b. both to raise revenue for public purposes and to influence market outcomes.
c. when they realize that price controls alone are insufficient to correct market inequities.
d. only in those markets in which the burden of the tax falls clearly on the sellers.

Answered by maham237 @ 27/04/2021

Answer:

Option B Both to raise revenue for public purposes and to influence market outcomes

Explanation:

The policymakers raise finance through taxes and use them for providing the basic needs of the people of the country. The policy makers also use this money to invest in areas from where it can earn enough to lower the burden of the taxpayers and also used to influence the market outcomes which helps the government to tackle the upcoming issues. So these are the issues which can be tackled by raising enough finance through imposition of taxes to provide basic needs to the people.

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Policymakers use taxes

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