If the Tax on a Good Is Increased from $1

question 347

Multiple Choice

If the tax on a good is increased from $1 per unit to $3 per unit,the deadweight loss from the tax increases by a factor of

• A) 2.
• B) 3.
• C) 9.
• D) 18.

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Definitions:

Nearest Exit

The closest point of egress from a building, vehicle, or area, often highlighted as part of safety protocols.

Large Audience

A substantial number of viewers, listeners, or spectators gathered for an event or through a broadcast media platform.

No Free Lunch

A principle asserting that everything has a cost, and nothing valuable can be obtained without effort or exchange.

Economists

Professionals who study, develop, and apply theories and concepts from economics to analyze data and understand economic issues and trends.