Governments That Impose Sin Taxes on Goods They Believe Are

question 57

Multiple Choice

Governments that impose sin taxes on goods they believe are harmful to the consumer may not take into account deadweight loss because:

• A) producer surplus increases when sin taxes are instituted.
• B) the demand curve reflects individuals' desire but not their ability to purchase.
• C) the consumer surplus that is lost may not reflect the consumer's welfare.
• D) individuals are self-interest-seeking rational beings.

---

Definitions:

Topic Expertise

Knowledge and skills in a particular area or subject.

Audience Participation

The involvement of spectators or listeners in the activity or performance they are witnessing.

Oral Presentation

A spoken report or speech given to an audience, often in a formal setting, for the purpose of sharing information, research, or ideas.

Visuals

Images, diagrams, charts, or any graphic elements used to support or enhance communication of ideas or data.