Use the Following to Answer Questions

question 40

Multiple Choice

Use the following to answer questions:
Figure: Tax on Sellers of Gadgets
-(Figure: Tax on Sellers of Gadgets) According to the figure, what is the amount of the deadweight loss caused by the imposition of the tax on gadgets?

• A) $100
• B) $1
• C) $0.50
• D) $50

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Definitions:

Distributional Justice

The philosophical and theoretical discussions and principles concerning the fair allocation of goods among members of society.

Income Redistribution

The transfer of income from certain individuals or groups to others through mechanisms such as taxation, welfare, and subsidies to achieve economic equity.

Utilitarian Justice

A principle in ethics and political philosophy that actions are right if they are useful or for the benefit of a majority, focusing on outcomes that maximize happiness or reduce suffering.

Dollar Worth

The value of the United States dollar in terms of goods, services, or other currencies.