The Deadweight Loss from a Tax

question 44

Multiple Choice

The deadweight loss from a tax

• A)does not vary in amount when the price elasticity of demand changes.
• B)does not vary in amount when the amount of the tax per unit changes.
• C)is larger,the larger is the amount of the tax per unit.
• D)is smaller,the larger is the amount of the tax per unit.

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Definitions:

Inventory Period

The average time it takes for a company to turn its inventory into sales, often used to evaluate the efficiency of inventory management.

Accounts Payable Period

The average number of days it takes for a business to pay off its creditors and suppliers.

Receivables Turnover

A financial metric indicating how quickly a company collects payments from its customers, calculated as sales divided by accounts receivable.

Cash Cycle

The period between the outlay of cash for purchases and the collection of cash from customers in a business.