Which, If Any, of the Following Transactions Will Increase a Taxing

question 123

Multiple Choice

Which, if any, of the following transactions will increase a taxing jurisdiction's revenue from the ad valorem tax imposed on real estate?

• A)A resident dies and leaves his farm to his church.
• B)A large property owner issues a conservation easement as to some of her land.
• C)A tax holiday issued 10 years ago has expired.
• D)A bankrupt motel is acquired by the Red Cross and is to be used to provide housing for homeless persons.
• E)None of these.

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Definitions:

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade possibilities.

Opportunity Costs

Opportunity costs represent the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Mutually Beneficial Trade

A trade agreement between parties that provides gains or advantages to all involved parties.

Tariff

a tax imposed on imported goods and services, intended to make foreign commodities less price-competitive than domestic goods.