Suppose the Tax on Liquor Is Increased So That the Tax

question 192

Multiple Choice

Suppose the tax on liquor is increased so that the tax goes from being a "medium" tax to being a "large" tax.As a result,it is likely that

• A) tax revenue increases, and the deadweight loss increases.
• B) tax revenue increases, and the deadweight loss decreases.
• C) tax revenue decreases, and the deadweight loss increases.
• D) tax revenue decreases, and the deadweight loss decreases.

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Definitions:

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, often involving rituals and worship of a supernatural power or deity.

Intrinsic Motivation

The drive to engage in activities for their own sake, deriving pleasure and satisfaction from the activity itself, rather than for some external reward.

Extrinsic Motivation

Performing an activity because of something that results from it.

Modest

Refers to behavior, manner, or appearance intended to avoid impropriety or indecency.