Figure 8-19

question 411

Multiple Choice

Figure 8-19. The figure represents the relationship between the size of a tax and the tax revenue raised by that tax.

-Refer to Figure 8-19.If the economy is at point A on the curve,then a decrease in the tax rate will

• A) increase the deadweight loss of the tax and increase tax revenue.
• B) increase the deadweight loss of the tax and decrease tax revenue.
• C) decrease the deadweight loss of the tax and increase tax revenue.
• D) decrease the deadweight loss of the tax and decrease tax revenue.

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Definitions:

Ostomy Device

A medical appliance attached to the body to collect waste from a surgically created opening in the digestive or urinary systems.

Bedridden

The condition of a person who is unable to get up from bed due to illness, disability, or weakness.

Mineral Oil

A colorless, odorless petroleum derivative used as a laxative or to soothe skin.

Diuretic Effect

Refers to the increased passage of urine caused by substances (diuretics) that help in the removal of fluid from the body.