The Dead-Weight Loss from an Excise Tax

question 15

Multiple Choice

The dead-weight loss from an excise tax

• A)is greater if demand is perfectly inelastic.
• B)is caused by a shift in consumer preferences when the tax is raised.
• C)is the lost surplus that results from higher prices and lower output resulting from the tax.
• D)is of little concern to policy makers since all excise taxes are "sin" taxes.
• E)is the difference between consumer surplus and producer surplus.

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Definitions:

Organizational Complexity

Refers to the degree of various elements and the extent of differentiation within an organization that affects its operations and decision-making.

Per-Unit Costs

The cost associated with producing or acquiring a single unit of a product or service, important for pricing and profitability analysis.

Segment Rivalries

Competitive tensions that occur within a specific segment of the market, often among businesses targeting similar customer bases.

Strategic Objectives

Specific, measurable goals that an organization aims to achieve in line with its strategic plan to drive it towards its long-term vision.