The Deadweight Loss (Or Excess Burden) Resulting from Levying a Tax

question 10

Multiple Choice

The deadweight loss (or excess burden) resulting from levying a tax on an economic activity is the

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

---

Definitions:

Supreme Court

The highest judicial court in a country or state, which has the ultimate authority to adjudicate in disputes and interpret the law.

Psychosurgery

A surgical procedure that alters brain tissue to change behavior, used to treat severe mental disorders.

Brain Surgery

A medical operation involving the brain to repair damage, remove tumors, or alleviate certain diseases or conditions.

Mental Problems

Disorders that affect mood, thinking, and behavior, also referred to as mental health issues or psychiatric disorders.