When a Tax Is Imposed, the Surplus That Is Lost

question 118

Multiple Choice

When a tax is imposed, the surplus that is lost to buyers and sellers but converted into tax revenue is:

• A)transferred to others through public programs.
• B)considered a cost of taxation.
• C)part of deadweight loss.
• D)All of these are true.

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Definitions:

Analytical Reasoning

The process of evaluating information to solve problems through logical thinking and analytical skills.

B. F. Skinner

An influential American psychologist known for his work in behaviorism and development of operant conditioning – a method of learning that occurs through rewards and punishments.

Reinforcement

In psychology, a process in which a behavior is strengthened or increased by a consequence, such as a reward or a removal of an unpleasant stimulus.

Shaping

An educational strategy where reinforcing actions that progressively mimic the sought-after behavior are employed.