An Excise Tax Causes Inefficiency If the Number of Transactions

question 181

Multiple Choice

An excise tax causes inefficiency if the number of transactions in a market is reduced as a result of the tax.Because the tax discourages mutually beneficial transactions,there is a(n) _____ from a tax.

• A)quota rent
• B)deadweight loss
• C)increased consumer surplus
• D)increased producer surplus

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Definitions:

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Reception

The act or process of receiving guests or goods.

Passive-voice Verbs

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