Figure 8-17 the Vertical Distance Between Points a and B Represents the Represents

question 4

Multiple Choice

Figure 8-17
The vertical distance between points A and B represents the original tax.

-Refer to Figure 8-17.The original tax can be represented by the vertical distance AB.Suppose the government is deciding whether to lower the tax to CD or raise it to FG.Which of the following statements is not correct?

• A) Compared to the original tax, the larger tax will increase tax revenue.
• B) Compared to the original tax, the smaller tax will decrease deadweight loss.
• C) Compared to the original tax, the smaller tax will decrease tax revenue.
• D) Compared to the original tax, the larger tax will increase deadweight loss.

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Definitions:

Psychological Factors

Elements of a person's psychological state that can affect their physical health, behavior, and overall well-being.

Psychological Dimensions

Aspects or factors that are used to describe and differentiate between individuals' psychological states and traits.

Sound Wave

A longitudinal wave consisting of compressions and rarefactions, which travels through a medium such as air or water and can be heard when they reach a person's or animal's ear.

Visual Cortex

The part of the cerebral cortex that processes visual information, located in the back of the brain.