Which of the Following Would Likely Have the Smallest Deadweight

question 52

Multiple Choice

Which of the following would likely have the smallest deadweight loss relative to the tax revenue?

• A)a head tax (that is,a tax everyone must pay regardless of what one does or buys)
• B)an income tax
• C)a tax on compact discs
• D)a tax on caviar

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Definitions:

Cash Budget

A forecast of cash receipts and disbursements for the next planning period.

Pro Forma Statement

A financial statement based on hypothetical scenarios or assumptions, used for planning and decision-making purposes.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity and short-term financial health of the company.