From an Economic Perspective, Imposition of a Per Unit Tax

question 15

Multiple Choice

From an economic perspective, imposition of a per unit tax is only advantageous if:

• A) the social benefits derived from added tax revenues are sufficient to overcome the social costs at a risk-adjusted rate of return.
• B) the social benefits derived from added tax revenues are sufficient to overcome the private costs at a risk-adjusted rate of return.
• C) the benefits derived from added tax revenues are sufficient to overcome the economic costs tied to the deadweight loss in social welfare.
• D) positive tax revenues are generated.

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Definitions:

Entrepreneurial Faculties

The skills, abilities, and mindset required to successfully identify opportunities, create, and grow new business ventures, including creativity, leadership, and risk tolerance.

Rapid Explosion

A sudden and rapid increase or expansion in a particular area or field, often used to describe quick growth in technology, population, or information.

Entrepreneurship

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Small Firms

Businesses characterized by a small number of employees, low revenue, or limited market share.