The Tax Rate That Maximizes the Revenue Generated by a Tax

question 34

Multiple Choice

The tax rate that maximizes the revenue generated by a tax

• A) is highly efficient, and therefore, the government should always seek to impose this rate.
• B) is an ideal tax rate from the standpoint of a government that wants to minimize the deadweight loss (or excess burden) accompanying taxation.
• C) is, from an efficiency standpoint, superior to any lower rate of taxation.
• D) will impose a large deadweight loss (excess burden) relative to the marginal revenues collected, and therefore, a government interested in the welfare of its citizens should select a lower tax rate.

---

Definitions:

Workplace Values Schema

A framework outlining the core beliefs and standards of behavior that are expected and valued within a workplace.

Discovering Truth

The process of uncovering factual and accurate information through rigorous investigation, research, or inquiry.

Being Impartial

The quality of treating all rivals or disputants equally; fairness and objectivity.

Self-Concept

An individual’s perception or image of themselves, shaped by experiences, beliefs, and feedback from others.