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The Replacement of a Per-Tonne Royalty with a Tax on Super

Question 21

Multiple Choice

The replacement of a per-tonne royalty with a tax on super profits results in:


A) less tax revenue and a lower level of output.
B) more tax revenue and a higher level of output.
C) less tax revenue and a higher level of output.
D) more tax revenue and a lower level of output.

Correct Answer:

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