Which Statement Is True

question 4

Multiple Choice

Which statement is true?

• A)A positive tax can create a DWL and not raise any revenue.
• B)A tax that raises no revenue will never create a DWL.
• C)A tax that raises tax revenue will create a DWL.
• D)All of the above statements are true.
• E)None of the above.

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Definitions:

Embargo

A government order restricting or prohibiting trade and commerce with a specific country or the exchange of specific goods.

Prisoner's Dilemma

A concept in game theory where two individuals acting in their own self-interest do not produce the optimal outcome for either party.

International Trade

The exchange of goods and services across international borders or territories, which involves the import and export activities between different countries.

Antidumping Actions

A class of protective tariffs imposed by a domestic government on foreign imports that are thought to be priced below fair market value.