Even If a Tax Imposed in a Market Generates a Loss

question 9

Multiple Choice

Even if a tax imposed in a market generates a loss in surplus for the participants in that market, the tax could still increase economic efficiency if:

• A)voters approve of the tax.
• B)the government needs to generate tax revenue.
• C)the public expenditures financed by the tax lead to a big enough increase economic surplus.
• D)the tax revenue is used to fund spending by local governments.

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Definitions:

Standard Deviation

A gauge for the level of deviation or dispersion within a group of quantities.

μ

The symbol used to represent the population mean in statistics.

Frequency Distributions

A statistical tool that organizes data by recording the number of times each value or group of values occurs.

Normal Distributions

A bell-shaped distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.