Taxes Create Deadweight Losses Because They

question 254

Multiple Choice

Taxes create deadweight losses because they

• A) reduce profits of firms.
• B) distort incentives.
• C) cause prices to rise.
• D) create revenue for the government.

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Definitions:

Reading Scores

Numerical or categorical assessments that represent an individual’s ability or proficiency in reading.

Degrees of Freedom

Refers to the number of independent values or quantities which can be assigned to a statistical distribution, minus the number of parameters estimated from sample data.

Equal-variances Test Statistic

A statistical method used to assess whether the variances of two populations are equal as part of comparing their means.

Confidence Interval Estimator

A statistical tool used to estimate the range within which a population parameter lies, with a certain confidence level.