Taxes Can Create Deadweight Losses Because They

question 67

Multiple Choice

Taxes can create deadweight losses because they

• A)allow the government to fund private goods.
• B)create administrative burdens as people comply with tax laws.
• C)allow the government to fund public goods.
• D)Both b and c are correct.

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Definitions:

Financial Manager

An individual responsible for overseeing and managing a company's financial activities and strategies.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Accounts Payable Period

The average number of days it takes for a business to pay its suppliers, indicative of the company's payment policies and cash flow management.

Quarterly Sales

The total revenue a company generates from its business activities during a specific three-month period of the fiscal year.