As the Tax on a Good Increases from $1 Per

question 34

Multiple Choice

As the tax on a good increases from $1 per unit to $2 per unit to $3 per unit and so on,the

• A)tax revenue increases at first,but it eventually peaks and then decreases.
• B)deadweight loss increases at first,but it eventually peaks and then decreases.
• C)tax revenue always increases,and the deadweight loss always increases.
• D)tax revenue always decreases,and the deadweight loss always increases.

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Definitions:

Effective Communication

Communication in which the intended meaning is fully understood by the receiver.

Efficient Communication

Communication that occurs at minimum cost.

Credibility

The quality of being trusted and believed in, often a result of consistency, integrity, and reliability.

Intended Message

The specific information or emotion that a communicator aims to convey to the receiver.