The Decrease in Consumer Surplus and Producer Surplus That Results

question 84

Multiple Choice

The decrease in consumer surplus and producer surplus that results from an inefficient level of production is called the

• A) external benefit.
• B) big tradeoff.
• C) external cost.
• D) deadweight loss.

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Definitions:

EIC

Earned Income Credit, a refundable tax credit aimed at low- to moderate-income working individuals and families, particularly those with children, to reduce their tax liability and potentially qualify for a tax refund.

Foreign Income Tax

Taxes paid on income earned from sources outside the taxpayer's country of residence.

Foreign Tax Credit

A credit that reduces the U.S. federal income tax liability for taxpayers paying or accruing income tax to foreign countries, preventing double taxation.

Premium Tax Credit

A refundable tax credit designed to help eligible individuals and families with low to moderate income afford health insurance purchased through the Health Insurance Marketplace.