Consider a Good to Which a Per-Unit Tax Applies

question 45

Multiple Choice

Consider a good to which a per-unit tax applies.The greater the price elasticities of demand and supply for the good,the

• A)smaller the deadweight loss from the tax.
• B)greater the deadweight loss from the tax.
• C)more efficient is the tax.
• D)more equitable is the distribution of the tax burden between buyers and sellers.

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Definitions:

Due Process Clause

A legal principle assuring fair treatment through the judicial system, especially as outlined in the Fifth and Fourteenth Amendments of the U.S. Constitution.

Liberties

The fundamental rights and freedoms protected from infringement by the government, including speech, religion, and assembly.

Rights

Legal, social, or ethical principles of freedom or entitlement; the fundamental normative rules about what is allowed of people or owed to people.

Barron v. Baltimore

An 1833 Supreme Court case which established that the protections of the Bill of Rights apply only to actions of the federal government and not to state governments.