One Way to Minimize the Excess Burden Resulting from a Specific

question 5

Multiple Choice

One way to minimize the excess burden resulting from a specific tax is to:

• A)tax only wealthy firms and individuals.
• B)spread the tax over many goods and services.
• C)tax goods for which either supply or demand is inelastic.
• D)tax luxury items such as yachts and sports cars.

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Definitions:

Chain Of Events

A sequence of occurrences or actions that are linked together, often leading to a particular result or outcome.

Business Model

A plan or framework for how a company creates, delivers, and captures value, in economic, social, cultural, or other contexts.

Formal Business Plan

A detailed document that outlines the strategy, objectives, and financial forecasts for a business.

Financial Projection

Financial projection is an estimate of future revenues, expenses, and profitability of a business or project.