If a Tax Generates a Reduction in Surplus That Is

question 77

True/False

If a tax generates a reduction in surplus that is exactly offset by the tax revenue collected by the government, the tax does not have a deadweight loss.

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Definitions:

Reminder Advertisements

Advertising campaigns designed to keep a brand or product in the minds of consumers, reinforcing awareness.

Previous Knowledge

The information or understanding that a person already has before learning something new or encountering new situations.

Competitive Advertisements

Advertising campaigns designed to highlight a product's or service's advantages over those of competitors.

Relative Strength

A measure in technical analysis indicating the performance of a stock or security compared to a market index or other securities over a period.