When Taxes Are Imposed on a Commodity

question 77

Multiple Choice

When taxes are imposed on a commodity:

• A)there is never a deadweight loss
• B)some consumers alter their consumption by not purchasing the taxed commodity
• C)tax revenue will rise by the amount of the tax multiplied by the before-tax level of consumption
• D)these taxes are considered non-distortionary

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Definitions:

Incorporation Services

Services offered by certain companies or legal entities that assist individuals or other entities in forming a corporation.

Fixtures

Items of property that are attached to a building or land in a way that makes them a legally part of that property, such as lighting systems or cabinetry.

Par Common Stock

The nominal or face value assigned to a share of common stock in the corporate charter, which may differ from the market value.

Articles of Incorporation

A document filed with a government body to legally document the creation of a corporation, containing essential details about the new entity.