Which of the Following Efficiency Conditions Is Violated with the Imposition

question 87

Multiple Choice

Which of the following efficiency conditions is violated with the imposition of a sales tax on one good in a perfectly competitive economy?

• A)efficiency in product mix
• B)efficiency in production
• C)efficiency in distribution
• D)efficiency in consumption

---

Definitions:

Future Transactions

Financial dealings or agreements set to occur at a future date, often involving the purchase or sale of goods, services, or assets.

Separate Entity Assumption

Business transactions are separate from the transactions of owners.

Liabilities

Obligations owed by a business to individuals or other entities, ranging from loans and mortgages to accounts payable.

Continuity Assumption

An accounting principle that assumes the business will continue operating indefinitely, not being forced to cease operations or liquidate.