Which of the Following Statements About a Land Tax Is

question 228

Multiple Choice

Which of the following statements about a land tax is correct?

• A) A tax on raw land causes no deadweight loss.
• B) Landowners bear the entire burden of a tax on raw land.
• C) The government's tax revenue exactly equals the loss of the landowners.
• D) All of the above are correct.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered to be cash equivalents.

Net Cash

The amount of cash remaining after all cash inflows and outflows have been accounted for over a specific period.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments, as part of the company's investment strategy.

Net Cash

The total amount of cash and cash equivalents a company possesses after deducting all liabilities, often used to assess its financial health.