The Decrease in Total Surplus That Results from a Market

question 195

Multiple Choice

The decrease in total surplus that results from a market distortion, such as a tax, is called a

• A)wedge loss.
• B)revenue loss.
• C)deadweight loss.
• D)consumer surplus loss.

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Definitions:

Suppliers

Entities or individuals that provide goods or services to consumers, businesses, or other organizations.

Real GDP Decreases

A decline in the inflation-adjusted value of all goods and services produced within a country, indicating a contraction in the economy.

GDP Increases

The rise in the market value of all final goods and services produced within a country over a specific time period, indicating economic growth.

Price Level

A measure of the average prices of goods and services in an economy over a period of time, often used to assess inflation.