The 1990 "Yacht Tax" Caused a Large Deadweight Loss Because

question 235

Multiple Choice

The 1990 "yacht tax" caused a large deadweight loss because demand for luxury yachts made in the United States is:

• A) very elastic.
• B) very inelastic.
• C) perfectly inelastic, since rich people will pay whatever is necessary.
• D) very steeply sloped.

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Definitions:

Secure Attachments

A type of attachment characterized by feelings of safety and security in relationships, often resulting from consistent and caring responses from caregivers in early childhood.

Siblings

Brothers or sisters; individuals having one or both parents in common.

Preoperational Stage

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by the development of language and symbolic thinking but limited in logical reasoning.

Concrete Operations

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 7 and 12, where children gain the ability to think logically about concrete events.