The Deadweight Loss from a Tax

question 44

Multiple Choice

The deadweight loss from a tax

• A)does not vary in amount when the price elasticity of demand changes.
• B)does not vary in amount when the amount of the tax per unit changes.
• C)is larger,the larger is the amount of the tax per unit.
• D)is smaller,the larger is the amount of the tax per unit.

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Definitions:

Actual Results

The real, measured outcomes of financial or operational activities, used to compare against budgeted or forecasted figures for analysis.

Administrative Expenses

Costs associated with the general administration of a business, such as salaries of executive officers, legal and secretarial expenses.

Client-visits

The instances when a client or customer visits a business premise for the purpose of obtaining services or conducting business.

Activity Variance

The difference between budgeted and actual costs due to changes in the level of activity.