Which of the Following Statements Is True for Markets in Which

question 39

Multiple Choice

Which of the following statements is true for markets in which the demand curve slopes downward and the supply curve slopes upward?

• A)As the size of the tax increases,tax revenue continually rises and deadweight loss continually falls.
• B)As the size of the tax increases,tax revenue and deadweight loss rise initially,but both eventually begin to fall.
• C)As the size of the tax increases,tax revenue rises initially,but it eventually begins to fall;deadweight loss continually rises.
• D)As the size of the tax increases,tax revenue rises initially,but it eventually begins to fall;deadweight loss falls initially,but eventually it begins to rise.

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Definitions:

"Make" Tactic

A strategy where a company decides to produce its products in-house rather than outsourcing.

"Ally" Tactic

A strategy where individuals or groups support and stand up for those in less privileged positions or facing discrimination.

Greenfield Venture

Refers to a type of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

Wholly Owned Subsidiary

A company whose entirety of shares is held by another corporation, the parent company, thus giving the parent complete control.