If the Government Desires to Raise a Certain Amount of Revenue

question 76

Multiple Choice

If the government desires to raise a certain amount of revenue by taxing a monopoly,an ad valorem tax will

• A) generate the same loss of consumer surplus as a specific tax.
• B) generate a greater loss of consumer surplus than a specific tax.
• C) generate a smaller loss of consumer surplus than a specific tax.
• D) generate no loss of consumer surplus.

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Definitions:

Reagents

Substances or compounds added to a system in order to bring about a chemical reaction or used to detect the presence of another substance.

Regio-

A prefix used in chemistry to indicate the region or specific position in a molecule where a reaction occurs or a substituent is located.

Stereochemical

Pertaining to the spatial arrangement of atoms within molecules and the impact of this arrangement on their chemical behavior and properties.

Regio-

A prefix in chemistry indicating the region or position in a molecule where a reaction occurs, often used to describe the specificity of chemical reactions.