Questions About the Equity of a Tax Are Concerned Mostly

question 133

Multiple Choice

Questions about the equity of a tax are concerned mostly with

• A) efficiency.
• B) tax revenue.
• C) fairness.
• D) deadweight loss.
• E) elasticity.

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Definitions:

Quantity

The amount or number of a material or immaterial good or service.

Average Fixed Cost

The fixed costs of production (expenses that do not change with the level of output) divided by the quantity of output produced.

Output

The total quantity of goods and services produced by an economy or a firm.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the quantity of output produced, a measure of per unit cost.