All taxes impose an excess burden.
A) True
B) False
C) Uncertain

Name: All taxes impose an excess burden. A) True B) False C) Uncertain
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Question

Quizplus · Accepted Answer

Not all taxes impose an excess burden. Some taxes, particularly those on perfectly inelastic goods or perfectly elastic supply, can be designed to minimize or avoid excess burden, focusing the tax's impact on revenue generation rather than distorting economic decisions.

All Taxes Impose an Excess Burden