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:

Right-brained Mindset

A way of thinking that is believed to be more creative, intuitive, and subjective, commonly associated with the brain's right hemisphere.

Entrepreneurial Passion

The intense emotion or enthusiasm that entrepreneurs have for their business venture and its activities.

Growth Mindset

A belief that abilities and intelligence can be developed through dedication and hard work, embracing challenges, and seeing failure as an opportunity for growth.

Fixed Mindset

A belief that one's abilities, intelligence, and talents are fixed traits and cannot significantly grow.