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Efficiency Loss
A reduction in economic well-being due to inefficiencies in the allocation of resources, often caused by market distortions or government policies.
Excise Taxes
Taxes paid when purchases are made on a specific good, such as gasoline, usually levied by the government on the sale of goods and services.
Shifting of Taxes
The process by which the burden of a tax is transferred from one party, such as the seller, to another, such as the buyer.
Perfectly Inelastic
A situation where the demand for a product does not change in response to a change in price.
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