The Efficiency Loss of a Tax Is

question 302

Multiple Choice

The efficiency loss of a tax is

• A) the net value of sacrificed output caused by the tax.
• B) that portion of the tax paid by producers minus the portion paid by consumers.
• C) that portion of the tax paid by consumers minus the portion paid by producers.
• D) the total tax revenue minus the output loss caused by the tax.

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Definitions:

Writing

The act or process of creating text or symbols on a surface, typically used to communicate or record information.

Seal

A formal mode of expressing the intention to be bound by a written promise or agreement. This expression usually takes the form of signing or affixing a wax or gummed paper wafer beside the signature, or making an engraved impression on the document itself.

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A legal concept that refers to the relationship between parties whose interests in a piece of property are intertwined.

Privity of Contract

A principle stating that only parties to a contract have the right to sue or be sued under the terms of the contract.