The Deadweight Loss from a Tax Is Equal to One

question 113

Multiple Choice

The deadweight loss from a tax is equal to one half of

• A) the tax revenue multiplied by consumer surplus.
• B) producer surplus multiplied by consumer surplus.
• C) the decrease in quantity sold multiplied by the tax revenue.
• D) the amount of the tax multiplied by the decrease in quantity sold.
• E) the amount of the tax multiplied by consumer surplus.

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Definitions:

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, carelessly whether it is true or false, with the intent that someone else would rely on it and suffer loss.

Intentionally Misleading

Deliberately providing false or deceptive information.

Intentional Misrepresentation

is the act of knowingly providing false information with the intent to deceive or mislead another party, often resulting in legal consequences.

Rescission

The act of revoking, canceling, or annulling a contract, returning the parties to their positions prior to the contract's execution.