Which of the Following Is a Cost of Taxes to the Taxpayer

question 10

Multiple Choice

Which of the following is a cost of taxes to the taxpayer?

• A) the tax itself
• B) deadweight losses
• C) administrative burdens
• D) all of the above

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Definitions:

Opportunity Cost

The value of the next best alternative that is forgone as a result of making a decision.

Startup Airline

A newly established airline company that is in the initial stages of its operations.

Round-Trip Ticket

A ticket that allows someone to travel to a destination and return to the original departure point, typically within a specified period.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits you could have received by taking an alternative action.