In the Absence of Taxes,Janet Would Prefer to Purchase a Large

question 102

Multiple Choice

In the absence of taxes,Janet would prefer to purchase a large sport utility vehicle (SUV) .However,the government has recently decided to place a $10,000 nuisance tax on SUVs.Which statement best reflects the effect of this tax if Janet decides to purchase a small economy car as a result of the tax

• A)Other people who choose to purchase SUVs will incur the cost of the deadweight loss of the tax.
• B)There are no deadweight losses as long as some people still choose to purchase SUVs.
• C)All deadweight losses are mitigated if there is a net decrease in air pollution.
• D)Janet is worse off, and her loss of welfare is part of the deadweight loss of the tax.

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Definitions:

Government Control

The extent and methods through which a governmental body regulates or influences societal behavior, economic activities, and public policies.

Margaret Fuller

An American journalist, critic, and women's rights advocate associated with the transcendentalist movement, known for her book "Woman in the Nineteenth Century".

Reform Movements

Movements aimed at making changes in societal norms, laws, or policies in order to address issues deemed unfair, unjust, or harmful.

19th Century

The period from January 1, 1801, to December 31, 1900, marked by significant political, cultural, and technological changes worldwide.