As the Tax on a Good Increases from $1 Per

question 34

Multiple Choice

As the tax on a good increases from $1 per unit to $2 per unit to $3 per unit and so on,the

• A)tax revenue increases at first,but it eventually peaks and then decreases.
• B)deadweight loss increases at first,but it eventually peaks and then decreases.
• C)tax revenue always increases,and the deadweight loss always increases.
• D)tax revenue always decreases,and the deadweight loss always increases.

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Definitions:

Active Transport

The passage of molecules over a cell's membrane, moving from an area of decreased concentration to an area of increased concentration, an endeavor that utilizes energy.

Concentration Gradient

A difference in the concentration of a substance across a distance, which can drive diffusion of particles from an area of high concentration to an area of lower concentration.

Carrier Molecules

Proteins that assist in moving substances through a cell membrane by altering their form or attaching to the substance.

Apoptosis

A process of programmed cell death that occurs in multicellular organisms, helping to maintain health by eliminating old, unnecessary, or unhealthy cells.