The Surplus That Is Lost and Not Converted to Tax

question 112

Multiple Choice

The surplus that is lost and not converted to tax revenue when a tax is imposed is:

• A) deadweight loss.
• B) value that disappears.
• C) not transferred to anyone else.
• D) All of these statements are true.

---

Definitions:

Home Mortgages

Loans provided by financial institutions to individuals for the purchase of a home, secured by the property itself.

Coupon Rates

The interest rate paid by fixed-income securities, typically expressed as a percentage of the principal amount.

Expiration Time

The specific date and time when an option, futures contract, or similar financial instrument becomes void and ceases to trade.

Exercise Price

The price at which the holder of an option can buy or sell the underlying security.