The Deadweight Loss Resulting from Levying a Tax on an Economic

question 85

Multiple Choice

The deadweight loss resulting from levying a tax on an economic activity is

• A) the tax revenue directed to the government as the result of the tax.
• B) the loss of potential gains from trade from activities forgone because of the tax.
• C) the increase in the price of an activity as the result of the tax levied on it.
• D) the marginal benefits derived from the expansion in government activities made possible by the increase in tax revenues.

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Definitions:

System Malfunctioning

Refers to the failure of a system to operate within its intended parameters or expectations.

Master Gland

A nickname for the pituitary gland, given because it produces hormones that regulate many important functions of other endocrine glands.

Pituitary

A small endocrine gland situated at the base of the brain, often referred to as the "master gland," that secretes hormones influencing various physiological processes.

Endocrine System

A network of glands in the body that release hormones into the bloodstream to regulate various bodily functions.