If the Government Wants to Minimise the Welfare Loss of a Tax

question 38

True/False

If the government wants to minimise the welfare loss of a tax, it should tax goods with more inelastic demands or supplies.

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Definitions:

Long Term Debt

Borrowings of a company or government that are due to be repaid over a period longer than one year.

Capital Structure

The mix of debt and equity financing used by a company to fund its operations and growth.

Return on Equity Ratio

A financial ratio that measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Financial Statements

Formal records of the financial activities and condition of a business, entity, or individual, including balance sheet, income statement, and cash flow statement.