If Uber Is Required to Start Paying the Value-Added Tax

question 84

Multiple Choice

If Uber is required to start paying the value-added tax (VAT) in Great Britain, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency.This would have a tendency to

• A)decrease producer surplus and decrease deadweight loss.
• B)decrease consumer surplus and increase deadweight loss.
• C)increase consumer surplus and increase producer surplus.
• D)maximize consumer surplus and minimize producer surplus.

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Definitions:

Crying

A natural emotional response involving the shedding of tears in response to an emotional state, pain, or a physical irritation of the eye.

Unfamiliar

Describes something or someone not known or recognized by a person.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding over the course of a person’s life.

Socio-Emotional

Pertaining to the interplay between social interactions and emotional responses, affecting an individual's development and well-being.