As the Tax on a Good Increases from $1 Per

question 191

Multiple Choice

As the tax on a good increases from $1 per unit to $2 per unit to $3 per unit and so on,

• A)the tax revenue increases at first, but it eventually peaks and then decreases.
• B)the deadweight loss increases at first, but it eventually peaks and then decreases.
• C)the tax revenue always increases and the deadweight loss always increases.
• D)the tax revenue always decreases and the deadweight loss always increases.

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Definitions:

Autonomy

The capacity to make an informed, uncoerced decision; often associated with independence and the ability to self-govern.

Rite Of Passage

A ceremonial event or a significant experience that marks the transition of an individual from one social status to another, often associated with growing up or entering a new community.

Social Identity

The “we” aspect of our self-concept; the part of our answer to “Who am I?” that comes from our group memberships.

Postconventional Stage

A phase in moral development where individuals recognize and uphold universal ethical principles that may transcend laws.