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:

Problem Solving

The process of identifying a problem, finding possible solutions, and then implementing a solution to address the identified problem.

Mania

A mental state characterized by extremely elevated mood, energy, and abnormal levels of activity, enthusiasm, or excitement.

Self-esteem

A measure of how much value people place on themselves, often seen as a reflection of an individual's overall subjective emotional evaluation of their own worth.

Suicidal

Pertaining to having thoughts of, tendencies towards, or actions aimed at ending one's own life.