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:

Pledges Receivable

Commitments made by donors to give a specific amount of money to an organization over a set period, recognized as receivables in accounting.

Donation Revenue

Income received by a non-profit organization through voluntary financial contributions from individuals, corporations, or other entities.

Provision for Uncollectible Pledges

Provision for Uncollectible Pledges is a reserve or expense recognized by nonprofits or businesses for pledges or receivables that are likely not to be collected.

Bad Debt Expense

Bad Debt Expense represents a charge to account for invoices that are not expected to be collected due to customers' inability to fulfill payment obligations.