Which of the Following Events Is Consistent with an Increase

question 29

Multiple Choice

Which of the following events is consistent with an increase in the deadweight loss of the gasoline tax from $30 million to $120 million?

• A)The tax on gasoline increases from $0.30 per gallon to $0.45 per gallon.
• B)The tax on gasoline increases from $0.30 per gallon to $0.60 per gallon.
• C)The tax on gasoline increases from $0.25 per gallon to $0.45 per gallon.
• D)The tax on gasoline increases from $0.25 per gallon to $1.00 per gallon.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often characterized by physical symptoms.

Correlation

A statistical measurement that indicates the extent to which two or more variables fluctuate together.

Facts

A statement or assertion that can be proven to be true or is accepted as true based on evidence.

Theories

Systematic, organized frameworks of concepts and principles designed to explain and predict phenomena.