A CBO Study Estimated That the Excess Burden from the Corporate

question 26

Multiple Choice

A CBO study estimated that the excess burden from the corporate income tax ________ of the revenues raised by the tax.This estimate would make the corporate income tax ________ imposed by the federal government.

• A)could equal more than half; one of the most inefficient taxes
• B)equals less than 10 percent; one of the most efficient taxes
• C)equals less than 3 percent; the most efficient tax
• D)equals more than 90 percent; the most inefficient tax

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Definitions:

Uniformly Distributed

A type of distribution where all outcomes are equally likely; every variable has the same frequency or probability.

Assembling Product

The process of combining components or parts to build a complete product.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Standard Normal

A normal distribution with a mean of zero and a standard deviation of one, widely used in statistical analysis.