(Figure: Changing Tax Rates 0) in the Figure, Suppose That

question 97

Multiple Choice

(Figure: Changing Tax Rates 0) In the figure, suppose that the tax rate is changed so that the market moves from the graph on the left to the graph on the right. This change would:

• A) decrease tax revenue and decrease deadweight loss.
• B) decrease tax revenue and increase deadweight loss.
• C) increase tax revenue and decrease deadweight loss.
• D) increase tax revenue and increase deadweight loss.

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Definitions:

Terminal Buttons

The small knobs at the end of an axon that release chemicals (neurotransmitters) to transmit the nerve impulse to the next neuron.

Synapses

The junctions across which nerve impulses pass from one neuron to another.

Glia

Non-neuronal cells in the nervous system that provide support and protection for neurons.

Axon

A long, slender projection of a neuron that transmits electrical impulses away from the neuron's cell body to other neurons or to muscles or glands.