Which of the Following Statements Is True About Taxes

question 8

Multiple Choice

Which of the following statements is true about taxes?

• A) Government revenue from a tax is always greater than the loss of producer surplus and consumer surplus.
• B) Taxes always create more deadweight loss than do price ceilings and price floors.
• C) Taxes decrease both consumer surplus and producer surplus while creating a deadweight loss.
• D) Both answers A and C are correct.

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Definitions:

Primary Dimensions

Core characteristics that define an individual, such as age, race, gender, and physical abilities.

Secondary Dimensions

Aspects of diversity that are not inherent, such as education background, marital status, parental status, military experience, and other life experiences that shape an individual's perspective.

Stereotypes

Oversimplified, widely held fixed beliefs or generalizations about a particular group of people or things.

Economic Cost

The total expenses incurred in the production of goods or services, including both direct and indirect costs, as well as opportunity costs.