If a Tax Did Not Induce Buyers or Sellers to Change

question 185

True/False

If a tax did not induce buyers or sellers to change their behavior, it would not cause a deadweight loss.

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Definitions:

Nonsense Syllables

Meaningless sets of two or more letters used in psychological experiments to study memory and learning.

Von Restorff Effect

A psychological phenomenon where an item that noticeably stands out is more likely to be remembered than other items.

Essay Exam

A type of test where individuals are required to write comprehensive and detailed responses to questions or prompts.

Free Recall

A test of memory in which an individual is asked to remember information without explicit prompts or cues.