If a Tax Did Not Induce Buyers or Sellers to Change

question 185

True/False

If a tax did not induce buyers or sellers to change their behavior, it would not cause a deadweight loss.

---

Definitions:

Opportunity Cost

is the value of the next best alternative forgone as a result of making a particular choice, highlighting the trade-offs in decision-making.

Absolute Advantage

The ability of a country or individual to produce a good or service more efficiently than others, using fewer resources.

Terms Of Trade

How much of one good exchanges for a unit of another good.

Comparative Advantage

The ability of a country or entity to produce a particular good or service at a lower opportunity cost than others, leading to more efficient international trade.