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All of the Following Are Costs Associated with the Imposition

question 236

Essay

All of the following are costs associated with the imposition of a tax except:
A.deadweight loss.
B.administrative cost.
C.tax revenues received from taxpayers.
D.equilibrium pricing.

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Definitions:

Publicly Traded Stocks

Stocks of companies that are traded on public stock exchanges, making them available to buy and sell by investors.

True Market Portfolio

An optimal portfolio that includes all available assets in the market, their proportions reflecting their market values, as suggested by the Capital Asset Pricing Model.

Derivatives

Claims whose value depends on what happens to the value of some other asset. Futures and options are two important types of derivatives, and their values depend on what happens to the prices of other assets. Therefore, the value of a derivative security is derived from the value of an underlying real asset or other security.

Foreign Securities

Investment instruments issued in a jurisdiction outside of the investor's country, including stocks, bonds, and other financial assets.

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