A Deadweight Loss Is a Consequence of a Tax on a Good

question 11

Multiple Choice

A deadweight loss is a consequence of a tax on a good because the tax

• A)induces the government to increase its expenditures.
• B)induces buyers to consume less,and sellers to produce less.
• C)increases the equilibrium price in the market.
• D)imposes a loss on buyers that is greater than the loss to sellers.

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Definitions:

Responsibility

The obligation to carry out tasks, make decisions, and be accountable for their outcomes.

Existential Concept

An idea related to existentialism, focusing on human freedom, choice, and the search for meaning in an inherently meaningless world.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Responsibility

The obligation to bear the consequences of one's actions, and the moral duty to act in accordance with expectations of the role or situation.