If the Government Desires to Raise a Certain Amount of Revenue

question 76

Multiple Choice

If the government desires to raise a certain amount of revenue by taxing a monopoly,an ad valorem tax will

• A) generate the same loss of consumer surplus as a specific tax.
• B) generate a greater loss of consumer surplus than a specific tax.
• C) generate a smaller loss of consumer surplus than a specific tax.
• D) generate no loss of consumer surplus.

---

Definitions:

Encoding

The process of converting ideas or messages into words, symbols, or images for communication.

Communication Process

The series of steps through which information is exchanged between individuals or groups, including sending, receiving, and interpreting messages.

Symbols

Images, signs, or objects that represent or stand for something else, often conveying complex ideas or concepts.

Encoding

The process of converting information into a form that can be understood and utilized by an electronic system.