If a Tax Generates a Reduction in Surplus That Is

question 77

True/False

If a tax generates a reduction in surplus that is exactly offset by the tax revenue collected by the government, the tax does not have a deadweight loss.

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Definitions:

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, often reflected in an increase in the GDP.

Social Overhead Capital

Capital invested in public infrastructure and services such as transportation, utilities, and education systems, essential for economic development.

Power Plants

Facilities that generate electricity by converting various forms of energy into electrical power.

Brain Drain

The emigration of highly trained or qualified individuals from a particular country or region, often due to better opportunities or living conditions elsewhere.