The Efficiency Loss of a Tax Is

question 207

Multiple Choice

The efficiency loss of a tax is

• A) the net value of sacrificed output caused by the tax.
• B) that portion of the tax paid by producers minus the portion paid by consumers.
• C) that portion of the tax paid by consumers minus the portion paid by producers.
• D) the total tax revenue minus the output loss caused by the tax.

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Definitions:

Adoption

The act of legally taking another's child and bringing it up as one's own or embracing ideas, methods, or innovations.

Internalization

The process of integrating or absorbing knowledge, beliefs, values, or behaviors into one's own perspective or organizational practices.

Trial

An evaluation period or test run of a product or service to assess its viability or effectiveness before a wider launch or implementation.

Evaluation

The process of assessing or appraising the quality, importance, or value of something.