Figure 8-10 the Vertical Distance Between Points a and B Represents the Represents

question 312

Multiple Choice

Figure 8-10
The vertical distance between points A and B represents the original tax.
-Refer to Figure 8-10.The original tax can be represented by the vertical distance AB.Suppose the government is deciding whether to lower the tax to CD or raise it to FG.Which of the following statements is not correct?

• A) Compared to the original tax,the larger tax will increase tax revenue.
• B) Compared to the original tax,the smaller tax will decrease deadweight loss.
• C) Compared to the original tax,the smaller tax will decrease tax revenue.
• D) Compared to the original tax,the larger tax will increase deadweight loss.

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Definitions:

Interossei Palmaris

Muscles located in the palm of the hand that are responsible for moving the fingers.

Flexor Carpi Ulnaris

A muscle of the human forearm that acts to flex and adduct the wrist.

Flexor Digitorum Profundus

A deep muscle in the forearm that flexes the fingers, enabling gripping and manipulation of objects.

Extensor Carpi Radialis Longus

A muscle in the forearm that extends the wrist and aids in its abduction.