All Taxes Create Some Deadweight Loss Except Those on Goods

question 51

Multiple Choice

All taxes create some deadweight loss except those on goods

• A) with a very low demand.
• B) that can be resold for a higher price.
• C) that everyone likes to consume.
• D) with a perfectly inelastic demand or supply.
• E) with a very elastic demand or supply.

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Definitions:

Actively-Managed Mutual Funds

Mutual funds managed by professionals who actively select investments in an effort to outperform the market.

Market Index

A statistical measure that represents the overall performance of a specific set of stocks or securities.

Wilshire 5000

A stock market index designed to measure the performance of all U.S.-headquartered equity securities with readily available price data.

NAV

Stands for Net Asset Value, which is the value per share of a mutual fund or ETF calculated by dividing the total value of all the securities in the portfolio by the number of shares outstanding.