The deadweight loss of taxation on a good is higher if ________.
A) the demand or the supply of the good is relatively price elastic
B) a progressive tax system is practiced
C) a low rate of tax is imposed on the sale of the good
D) there is only one seller in the market
Question 2
In the economic way of thinking, money
A) allows people to behave completely morally.
B) allows people to behave completely competitively.
C) allows people to make goods exchanges without concern for the true costs of their actions.
D) allows people to make a wide range of negotiations.
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