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If Political Officials Want to Minimize the Excess Burden Accompanying

Question 199

Multiple Choice

If political officials want to minimize the excess burden accompanying a tax, they should set the tax at a rate


A) that will maximize the revenue derived from the tax.
B) slightly above the rate that will maximize the revenue derived from the tax.
C) well below the rate that will maximize the revenue derived from the tax.
D) that is the highest that could possibly be imposed.

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