What Circumstances Favor Nonneutral Taxes

question 209

Multiple Choice

What circumstances favor nonneutral taxes?

• A) only the presence of externalities
• B) only the presence of other distortionary taxes
• C) both the presences of externalities and other distorting taxes
• D) both inelastic demand and the presence of externalities

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Definitions:

Sacred

Anything considered worthy of spiritual respect or devotion; often set aside from the profane or ordinary.

Collective Effervescence

A sociological concept introduced by Emile Durkheim to describe the sense of energy and harmony experienced by individuals when participating in group activities, leading to a feeling of social solidarity.

Durkheimian Perspective

A theoretical approach in sociology based on the works of Émile Durkheim, focusing on social structures and their role in maintaining societal equilibrium.

Ecstatic

An emotional state of intense joy or overwhelming happiness.