A Tax That Imposes a Small Excess Burden Relative to the Tax

question 204

Multiple Choice

A tax that imposes a small excess burden relative to the tax revenue that it raises is

• A)a payroll tax.
• B)a sin tax.
• C)an efficient tax.
• D)a FICA tax.

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Definitions:

Waking Hours

The periods during the day when an individual is awake and actively engaged in activities.

Efficient Production

The process of producing goods or services in a way that minimizes waste and maximizes the utilization of resources.

Coconuts

Edible tropical fruits provided by the coconut palm that are used in a variety of foods and beverages.

Fish

Aquatic animals with gills and usually scales, living in freshwater or saltwater environments, commonly used as food.