If a Tax and a Price Control Have the Same

question 51

True/False

If a tax and a price control have the same effect on the price paid by consumers,then the two policies will create the same deadweight loss.

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Definitions:

Surplus Value

A Marxian term: the amount by which the value of a worker’s daily output exceeds the worker’s daily wage.

Capitalist

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.

One Piece Of Land

Typically refers to a specific parcel of land, often considered in contexts like ownership, real estate transactions, or land usage planning.

Land Differs

The concept that land has unique characteristics that affect its value and use, such as location, topography, and fertility, making it distinct from other factors of production.