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

question 138

True/False

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

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Definitions:

Local Government

The administration of a particular town, city, county, or district with responsibility for providing services and enforcing regulations at a local level.

Expenditures

The action of spending funds or the amount spent on various items or services, including operational costs, investments, and personal spending.

Education

Education involves the systematic instruction and training provided by schools and universities to impart knowledge, skills, and critical thinking abilities.

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Jobs provided by the federal government, encompassing a wide range of positions, from administrative roles to national defense.