If Political Officials Want to Minimize the Excess Burden Accompanying

question 199

Multiple Choice

If political officials want to minimize the excess burden accompanying a tax, they should set the tax at a rate

• A) that will maximize the revenue derived from the tax.
• B) slightly above the rate that will maximize the revenue derived from the tax.
• C) well below the rate that will maximize the revenue derived from the tax.
• D) that is the highest that could possibly be imposed.

---

Definitions:

Absorbed

The process by which substances are taken into cells or across tissues, such as liquids absorbed by the skin or nutrients by the body.

Manufacturer

A person or company that makes goods for sale, especially on a large scale and involving complex machinery and processes.

Analgesic

A class of drugs designed to relieve pain without causing loss of consciousness, often referred to as painkillers.

Antacids

Medications that neutralize stomach acid to relieve symptoms of heartburn and indigestion.