Consider a Good to Which a Per-Unit Tax Applies

question 45

Multiple Choice

Consider a good to which a per-unit tax applies.The greater the price elasticities of demand and supply for the good,the

• A)smaller the deadweight loss from the tax.
• B)greater the deadweight loss from the tax.
• C)more efficient is the tax.
• D)more equitable is the distribution of the tax burden between buyers and sellers.

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Definitions:

Production Budget

An estimate of the total cost of production that includes direct labor, materials, and overhead expenses for a specific period.

Labour Requirements

The amount and type of labor necessary to produce a certain quantity of goods or to provide services.

Zero-Base Budgeting

A budgeting approach where every expense must be justified for each new period, starting from a "zero base," with no reference to prior years' budget.

Redundant Activities

Processes or tasks that are unnecessary or duplicative, leading to inefficiency within an organization.