When a Tax Is Imposed,the Surplus That Is Lost to Buyers

question 11

Multiple Choice

When a tax is imposed,the surplus that is lost to buyers and sellers but converted into tax revenue is:

• A) transferred to others through public programs.
• B) lost and considered a cost of taxation.
• C) part of deadweight loss.
• D) All of these statements are true.

---

Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in cash.

Net Income

The net income of a company once all costs and taxes are deducted from its total revenue.

Short-Term Stock Investments

Investments in stocks that are intended to be held for a short period, typically less than one year, for earning quick profits.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed.