When a Tax Is Imposed on a Good, the Resulting

question 47

True/False

When a tax is imposed on a good, the resulting decrease in consumer surplus is always larger than the resulting decrease in producer surplus.

---

Definitions:

Tsunami

A series of ocean waves with extremely long wavelengths caused by large-scale disturbances such as earthquakes, volcanic eruptions, or underwater landslides.

Recurrence Intervals

The average time between events such as earthquakes, floods, or volcanic eruptions, used in risk assessment and planning.

Prehistoric Earthquakes

Earthquakes that occurred before historical records were kept, studied primarily through geologic evidence.

Seismic Events

Phenomena that are caused by the sudden release of energy in the Earth's crust, resulting in ground shaking and sometimes displacement.