If the Tax on a Good Is Increased from $1

question 133

Multiple Choice

If the tax on a good is increased from $1 per unit to $4 per unit, the deadweight loss from the tax increases by a factor of

• A)5.
• B)9.
• C)16.
• D)24.

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Definitions:

Gastrointestinal Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, including the stomach and intestines, that digest food and absorb nutrients and water.

Pancreatic Amylase

An enzyme produced by the pancreas that helps in the digestion of carbohydrates by breaking down starches into sugars.

Peristaltic Waves

Sequential muscle contractions that occur in the gastrointestinal tract to move contents through the digestive system.

Attachment Behaviors

Actions performed by infants and children to seek proximity to their caregivers, signaling a need for comfort and security.