If the Government Wants to Raise Taxes While Generating the Least

question 145

Multiple Choice

If the government wants to raise taxes while generating the least amount of deadweight loss,it should raise taxes on a good with a

• A) very elastic demand.
• B) very elastic supply.
• C) somewhat elastic supply.
• D) somewhat elastic demand.
• E) perfectly inelastic demand.

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Definitions:

Hypothyroidism

A condition where the thyroid gland does not produce enough thyroid hormones, leading to symptoms like fatigue, weight gain, and cold intolerance.

Gastric Bypass

A surgical procedure that alters the stomach and digestive system to promote weight loss, typically by reducing stomach size and rerouting part of the small intestine.

Clinical Depression

A severe psychological disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure.

Communicating

The process of exchanging information, ideas, thoughts, and feelings through verbal or non-verbal means.