Which of the Following Statements Is TRUE About Taxes

question 201

Multiple Choice

Which of the following statements is TRUE about taxes?

• A) Taxes always create more deadweight loss than do price ceilings and price floors.
• B) Taxes decrease both consumer surplus and producer surplus while creating a deadweight loss.
• C) Government revenue from a tax is always greater than the loss of producer surplus and consumer surplus.
• D) Both answers A and C are correct.

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Definitions:

Internal Customer

The person who depends on the other people in the company to provide the services and products for the external customer.

Mediator

A neutral third party who assists in resolving disputes by facilitating communication between conflicting parties with the goal of reaching an agreement.

Customer Service Ethics

Moral guidelines that govern the behavior and practices of individuals providing services to customers.

Quality Of The Services

The degree to which a service meets the customer's expectations and requirements, often judged on criteria like efficiency, effectiveness, and emotional satisfaction.