Which of the Following Statements Is True About Taxes

question 8

Multiple Choice

Which of the following statements is true about taxes?

• A) Taxes always create more deadweight loss than do price ceilings and price floors.
• B) Taxes decrease both consumer surplus and producer surplus while creating a deadweight loss.
• C) Government revenue from a tax is always greater than the loss of producer surplus and consumer surplus.
• D) Both answers A and C are correct.

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Definitions:

Marketing Strategy

A comprehensive plan formulated to achieve the marketing goals of an organization, including targeting the right audience, positioning the product or service, and implementing various marketing mix elements.

Analytics

The systematic computational analysis of data or statistics, used for the discovery, interpretation, and communication of meaningful patterns in data.

Return on Marketing Investment (ROMI)

A measurement of the profitability and effectiveness of marketing efforts, calculated by dividing the incremental financial gain from marketing by the cost of the marketing activities.

Expenses

Refers to the costs incurred in the operation of a business or the execution of a project.