Deadweight Loss Is The

question 74

Multiple Choice

Deadweight loss is the:

• A)reduction in total surplus that results from a tax
• B)loss of profit to businesses when a tax is imposed
• C)reduction in consumer surplus when a tax is placed on buyers
• D)decline in government revenue when taxes are reduced in a market

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Definitions:

Represents

To act on behalf of someone or something, often in a legal or official capacity.

Independent Contractor

An individual who provides services to another entity under a contract for services, retaining control over how the services are performed.

Specific Undertaking

A precise commitment or obligation that a party agrees to carry out.

Limited Liability Partnership

A partnership in which some or all partners (depending on the jurisdiction) have limited liabilities, protecting them from the debts of the partnership and other partners' actions.