If a Tax Imposed in a Market Generates Deadweight in That

question 19

Multiple Choice

If a tax imposed in a market generates deadweight in that market, then the tax:

• A)will necessarily lower economic surplus.
• B)could still increase economic surplus, depending on how the tax revenue is spent.
• C)will never be approved by voters.
• D)will generate very little tax revenue.

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Definitions:

Internal Locus

A psychological concept where an individual believes they can control their life and outcomes.

Control

The power to influence or direct people's behavior or the course of events.

Immune System

The body's defense mechanism against infections, diseases, and foreign substances, comprising various organs, cells, and proteins.

White Blood Cells

Components of the immune system that defend the body against infectious disease and foreign materials.