The Excess Burden of a Tax Is

question 22

Multiple Choice

The excess burden of a tax is

• A)the amount by which the price of a good increases.
• B)the loss of consumer and producer surplus that is not transferred elsewhere.
• C)The amount by which a person's after-tax income decreases as a result of the new tax.
• D)the welfare costs to firms forced to leave the market due to an inward shift of the demand curve.

---

Definitions:

Reproductive Capacity

The ability of an individual or species to produce offspring, encompassing all biological functions related to reproduction.

Homosexuals

People who seek emotional-sexual relationships with members of the same gender.

Physical Attractiveness

The degree to which a person’s physical traits are considered aesthetically pleasing or beautiful.

Plays A Major

Holds significant importance or role in the context it applies to, contributing crucially to an outcome or situation.