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:

Problem-solving Groups

Teams or collectives formed with the specific purpose of addressing and finding solutions to specific challenges or issues.

Target Setting

The process of establishing specific, usually quantifiable, goals to be achieved in a negotiation or strategic plan.

Negotiator Effort

The amount of energy, time, and resources committed by a negotiator to prepare for and engage in the negotiation process.

Multiple-issue Negotiations

Negotiations that involve several different issues or aspects, allowing for more complex interactions and opportunities for trade-offs.