Which of the following statements is true?

Question

Quizplus · Accepted Answer

Super profits tax would compensate the people of Australia for the value of the minerals extracted in mineral industries. This is because the tax is intended to capture the excess profits earned by firms in the industry, and this excess is considered to be a result of the inherent value of the mineral resources themselves. Therefore, the tax is seen as a way of ensuring that the public shares in the benefits of these resources. Choices A and C are incorrect because they do not accurately reflect the relationship between tax and market efficiency or firm behavior. Choice B is incorrect because a super profits tax is not the same as a royalty, although both can have an impact on the profitability of firms in the mining industry.

Which of the Following Statements Is True