All Taxes Create Some Deadweight Loss Except Those on Goods

question 51

Multiple Choice

All taxes create some deadweight loss except those on goods

• A) with a very low demand.
• B) that can be resold for a higher price.
• C) that everyone likes to consume.
• D) with a perfectly inelastic demand or supply.
• E) with a very elastic demand or supply.

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Definitions:

Continuation

The process of extending or carrying on an activity without interruption.

Undiscounted Sum

The total of all future cash flows associated with an investment or project without adjusting them for their present value.

Discounted

The method of calculating the current value of a future sum of money or series of cash flows using a particular return rate.

Interest Expense

The financial charges a company bears for loaned money across a time frame.