The Tax on Gasoline

question 488

Multiple Choice

The tax on gasoline

• A)reduces efficiency by causing large deadweight losses.
• B)reduces efficiency by decreasing consumer surplus and producer surplus.
• C)enhances efficiency by serving as a corrective device in a market with positive externalities.
• D)enhances efficiency by serving as a corrective device in a market with negative externalities.

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Definitions:

Informal Punishment

Punitive actions or responses that occur outside formal judicial or institutional frameworks, often within social groups or communities.

Social Diversions

Are minor acts of deviance that are generally perceived as relatively harmless. They evoke, at most, a mild societal reaction, such as amusement or disdain.

Cultural Definitions

The meanings, values, and norms that a society or group attaches to certain behaviors, phenomena, or symbols.

Stigmatization

The act of disgracing or branding someone or something as disgraceful or unworthy.