Question
Which of the following actions would INCREASE the deadweight loss (=excess burden) of the tax in question? (CHOOSE ALL THAT APPLY) A. Take a broad-based
Which of the following actions would INCREASEthe deadweight loss (="excess burden") of the tax in question? (CHOOSE ALL THAT APPLY)
A. Take a broad-based sales tax and make it more selective
B. Tax close substitute goods at the same rate
C. Tax goods for which demand is very sensitive to price
D. Keep the tax rate as low as possible
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Principles of Economics
Authors: Gregory Mankiw
7th edition
128516587X, 978-1285165875
