If the Government Wants to Raise Taxes While Generating the Least

question 145

Multiple Choice

If the government wants to raise taxes while generating the least amount of deadweight loss,it should raise taxes on a good with a

• A) very elastic demand.
• B) very elastic supply.
• C) somewhat elastic supply.
• D) somewhat elastic demand.
• E) perfectly inelastic demand.

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Definitions:

Cognitive Development

Refers to the process through which a child learns to perceive, think, and gain a comprehensive understanding of their environment.

Money

A medium of exchange, in the form of coins and banknotes, used to facilitate transactions and measure the value of goods and services.

Coffee

A beverage made from roasted coffee beans, which contain caffeine, known for its stimulating effects on the nervous system.

Nativist Perspectives

Nativist Perspectives are theories in psychology and linguistics that suggest certain skills or abilities are innate and hardwired into the brain at birth.