One Reason That Deadweight Losses Are So Difficult to Avoid

question 170

Multiple Choice

One reason that deadweight losses are so difficult to avoid is that

• A)taxes affect the decisions that people make.
• B)income taxes are not paid by everyone.
• C)consumption taxes must be universally applied to all commodities.
• D)the administrative burden is hard to calculate.

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Definitions:

Cost of Goods Sold

The expenses directly associated with manufacturing the products that a company sells.

Direct Materials

Components that are a fundamental part of the finished product, directly associated with its manufacturing process.

Total Manufacturing Costs

Total manufacturing costs include all expenses directly related to the production of goods, including raw materials, labor, and manufacturing overhead.

Compute

To calculate or solve a problem using mathematical or logical operations.