Price Elasticities of Demand and Supply Will NOT Play a Major

question 134

Multiple Choice

Price elasticities of demand and supply will NOT play a major role in determining:

• A)the ability of policy makers to change consumption of a good via the imposition of an excise tax.
• B)the deadweight loss arising from the imposition of an excise tax.
• C)the burden of the tax on consumers and producers.
• D)administrative costs of imposing an excise tax.

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Definitions:

Available-for-sale Debt Investment

Debt securities not classified as held-to-maturity or trading securities, and can be sold in the short-term for liquidity purposes.

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged in a current transaction between informed, willing parties.

Income Statement

A financial report detailing a company's revenues, expenses, and net income over a specific accounting period, showing its operating performance.

Available-for-sale Security

A financial instrument held by a firm not classified as held-for-trading or held-to-maturity, and thus can be sold before maturity.