In Which of the Following Instances Would the Deadweight Loss

question 63

Multiple Choice

In which of the following instances would the deadweight loss of the tax on airline tickets increase by a factor of 9?

• A)The tax on airline tickets increases from $20 per ticket to $60 per ticket.
• B)The tax on airline tickets increases from $20 per ticket to $90 per ticket.
• C)The tax on airline tickets increases from $15 per ticket to $60 per ticket.
• D)The tax on airline tickets increases from $15 per ticket to $135 per ticket.

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Definitions:

World Exports

This term relates to the total sum of goods and services that are sold and shipped by one country to others across the globe.

GDP

stands for Gross Domestic Product, a measure of a nation's total economic output and a key indicator of economic health.

NAFTA

The North American Free Trade Agreement, a treaty between the United States, Canada, and Mexico that eliminated most tariffs on trade between them.

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculated as the total value of all goods and services produced over a specific time period.