Which of the following statements about a land tax is correct?
A) A tax on raw land causes no deadweight loss.
B) Landowners bear the entire burden of a tax on raw land.
C) The government's tax revenue exactly equals the loss of the landowners.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

A tax on raw land is efficient because it does not distort economic decisions, leading to no deadweight loss. Landowners bear the entire burden because the supply of land is perfectly inelastic. The tax revenue collected by the government equals the loss incurred by landowners.

Which of the Following Statements About a Land Tax Is