If the Tax on Gasoline Increases from $2 to $4

question 57

Multiple Choice

If the tax on gasoline increases from $2 to $4 per gallon,the deadweight loss from the tax increases by a factor of

• A)one-half.
• B)two.
• C)four.
• D)six.

---

Definitions:

Atom

The smallest unit of a chemical element, consisting of a nucleus and electrons, forming the basis of all chemical substances.

Knock

A term often used in automotive to describe the premature combustion of fuel in the cylinder of an engine, leading to inefficient performance.

Compound

A substance formed when two or more chemical elements are chemically bonded together.

Properties

Characteristics or attributes that define the behavior, state, or qualities of a system, substance, or object, in various contexts.