The Excess Burden of a Tax Reflects a Reduction of

question 12

Multiple Choice

The excess burden of a tax reflects a reduction of

• A)allocative inefficiency.
• B)total tax revenues.
• C)total economic surplus.
• D)both equilibrium price and quantity.
• E)economic profits generated in the economy.

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Definitions:

Self-awareness Theory

The concept that individuals gain insight into themselves by observing their own actions and the reactions of others, leading to a deeper understanding of their own behavior.

Attitudes

Mental inclinations manifested through showing a certain level of preference or aversion towards a specific entity.

Values

Fundamental beliefs or principles that guide individuals' behaviors and decision-making, reflecting what is important to them.

Goals

Cognitions that represent outcomes that we strive for in order to meet our needs and desires.