If the Tax on a Good Is Increased from $0

question 62

Multiple Choice

If the tax on a good is increased from $0.30 per unit to $0.90 per unit,the deadweight loss from the tax

• A)remains constant.
• B)increases by a factor of 4.
• C)increases by a factor of 9.
• D)increases by a factor of 16.

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Definitions:

Cognitive

Relating to mental processes such as perception, memory, thought, and problem-solving, crucial for understanding, learning, and decision-making.

Social Referencing

Using another person’s reaction to a situation to form one’s own assessment of it.

Secure Attachment

A stable and healthy emotional bond between an infant and their caretaker, characterized by trust and a sense of safety.

Insecure Attachment

A type of attachment characterized by fear, anxiety, or uncertainty in relationships, resulting from inconsistent caregiver responses.