The Amount of Deadweight Loss That Results from a Tax

question 36

Multiple Choice

The amount of deadweight loss that results from a tax of a given size is determined by

• A)whether the tax is levied on buyers or sellers.
• B)the number of buyers in the market relative to the number of sellers.
• C)the price elasticities of demand and supply.
• D)the ratio of the tax per unit to the effective price received by sellers.

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Definitions:

National Government Supremacy

The principle that the federal or national government has predominant power and authority over regional or state governments, especially in legislative matters.

Commerce Among States

The regulation of trade and business across state lines, often governed by federal law in contexts such as the United States.

Gibbons v. Ogden

A landmark Supreme Court case in 1824 that clarified the scope of the U.S. Congress's legislative power over interstate commerce.

Judicial Review

The power of courts to assess whether a law, policy, or executive action is in conflict with the Constitution.