Taxes Create Deadweight Loss When They

question 84

Multiple Choice

Taxes create deadweight loss when they

• A)distort behavior.
• B)cause the price of the product to increase.
• C)don't raise sufficient government revenue.
• D)cannot be computed easily.

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Definitions:

Conditioned Stimulus

An initially neutral signal that, once linked with an unconditioned stimulus, triggers a conditioned reaction.

Drug Cravings

Intense desires or urges for the consumption of a specific drug, often experienced by individuals with substance use disorders.

Law Of Effect

A psychological principle stating that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are less likely to be repeated.

Operant Conditioning

A method of learning where a behavior's intensity is altered through the application of rewards or penalties.