Figure 21-1 -Refer to Figure 21-1. a Consumer Who Chooses to Spend

question 203

Multiple Choice

Figure 21-1
-Refer to Figure 21-1. A consumer who chooses to spend all of her income could be at which point(s) on the figure?

• A)B only
• B)A only
• C)E, D, or C only
• D)B, E, D, or C only

---

Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of products like tobacco, alcohol, and gasoline.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Tax Revenues

The income that is gained by governments through taxation, which is then used to fund public services and infrastructure.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium outcome is not achievable or not achieved in a market.