Which of the Following Taxes Does NOT Lead to a Deadweight

question 219

Multiple Choice

Which of the following taxes does NOT lead to a deadweight loss?

• A) A proportional income tax
• B) A lump-sum tax
• C) A progressive income tax
• D) A proportional tax on property

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Definitions:

Accounts Receivables

Represents money owed to a company by its customers for goods or services delivered but not yet paid for.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets, without selling inventory.

Liquidity

The ease with which an asset, or security, can be converted into ready cash without affecting its market price.