If the Government's Primary Goal Is to Maximize Efficiency and Minimize

question 128

Multiple Choice

If the government's primary goal is to maximize efficiency and minimize deadweight loss, it should impose a(n) :

• A)income tax.
• B)lump-sum tax.
• C)sin tax.
• D)proportional tax.

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Definitions:

Total Costs

The complete aggregate of expenses incurred by a business, encompassing both fixed and variable costs.

Differential Revenue

The difference in revenue between two alternative decisions or scenarios.

Course of Action

A plan or strategy designed to achieve a specific goal or solve a problem.

Differential Cost

The difference in total cost between two alternative decisions or scenarios.