If the Primary Goal in Implementing a Tax Is to Maximize

question 120

Multiple Choice

If the primary goal in implementing a tax is to maximize efficiency and minimize deadweight loss,the government should impose a(n) :

• A) income tax.
• B) lump sum tax.
• C) sin tax.
• D) proportional tax.

Understand the principles governing the formation of contracts, including the offer and acceptance rules.

Distinguish between different types of rules such as the mirror image rule, mailbox rule, and others relevant to contract law.

Comprehend the doctrine of promissory estoppel and its requirements.

Grasp the concept of consideration and its significance in contract validity.

---

Definitions:

Traditional CAPM

The Capital Asset Pricing Model, a framework used to determine the expected return on an investment, factoring in risk-free rate, the asset's beta, and the market risk premium.

Fama-French Three-factor Model

A model that expands the CAPM by adding size risk and value risk factors to the market risk factor, explaining stock returns more accurately.

Firm Size

Generally refers to the scale of a business entity in terms of its assets, revenues, or number of employees, which can affect its operations and financial performances.

Book-to-market Ratio

A valuation metric comparing a company's book value to its market value.