The Government Unit That Wants to Achieve "Revenue Enhancement" Will

question 38

Multiple Choice

The government unit that wants to achieve "revenue enhancement" will find it considerably more favorable to enact an excise tax on goods whose demand is

• A)highly elastic.
• B)relatively elastic.
• C)highly inelastic.
• D)unitary elastic.

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Definitions:

Benefit

an advantage or profit gained from something, or the act of improving or advancing in a particular aspect.

Requirement

A specified necessity; conditions or capabilities needed by a user to solve a problem or achieve an objective.

Negative Connotations

Implications or associations of a word or phrase that evoke negative feelings or perceptions.

Fail

to fall short of success in achieving a goal or meeting a standard, often leading to negative consequences or the need for reevaluation.