If a $2 Tax on Cigarettes Decreases Both Consumer and Producer

question 41

Multiple Choice

If a $2 tax on cigarettes decreases both consumer and producer surplus:

• A) tax revenues will exactly equal the amount of the lost consumer and producer surplus.
• B) tax revenues will be less than the amount of the lost consumer and producer surplus.
• C) tax revenues will be more than the amount of the lost consumer and producer surplus.
• D) there will be no deadweight loss.

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Definitions:

Moral Principles

Fundamental beliefs or rules about right and wrong that guide an individual's behavior and decision-making.

Professional Ethics

The principles and standards that govern the behavior of individuals within a professional setting, ensuring integrity and ethical decision-making.

Confidentiality

The principle or practice of maintaining privacy and not disclosing information without proper authorization or consent.

Professional Judgment

The ability of professionals to make decisions based on their expertise, experience, ethics, and the specifics of the situation at hand.