Increasing Relative Costs Are the Result of

question 70

Multiple Choice

Increasing relative costs are the result of

• A)high taxes.
• B)increasing scarcity.
• C)the fact that resources are not perfectly adaptable for alternative uses.
• D)the fact that the more society produces,the more difficult it is to use resources efficiently.

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Definitions:

Deadweight Loss

The reduction in economic efficiency that happens when a good or service does not reach or cannot reach its equilibrium.

Efficient Tax System

A tax system that collects required revenue without excessive government borrowing, and does so in a way that does not impede economic growth.

Tax Revenues

The income that is received by the government from taxpayers, including individuals and businesses, to fund public expenditures.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.