A Deadweight Loss Is a Consequence of a Tax on a Good

question 11

Multiple Choice

A deadweight loss is a consequence of a tax on a good because the tax

• A)induces the government to increase its expenditures.
• B)induces buyers to consume less,and sellers to produce less.
• C)increases the equilibrium price in the market.
• D)imposes a loss on buyers that is greater than the loss to sellers.

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Definitions:

Upper Limb

The part of the human body extending from the shoulder to the hand, including the arm, forearm, and hand.

Girdle

Belt or zone; the bony region where the limbs attach to the body.

Range of Movements

The entire spectrum of motion that a joint can achieve, typically involving its capacity for bending and straightening.

True Ribs

The upper seven pairs of ribs that are directly attached to the sternum by their costal cartilages, providing protection to the thoracic cavity.