Which Statement About Taxes Is INCORRECT

question 89

Multiple Choice

Which statement about taxes is INCORRECT?

• A) Taxes in markets always cause deadweight losses.
• B) If the good causes an external cost, taxes actually reduce deadweight loss.
• C) Both taxes and tradable allowances in a market that has external costs can lead to the efficient quantity.
• D) Taxes on producers cause the supply curve for the product to shift to the left.

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Definitions:

Persuasive Communication

The art of using messages specifically designed to influence the opinions, beliefs, or behaviors of others.

Noise

Unwanted or disruptive sound or other forms of interference that impair communication or concentration.

Status on Communication

The role or position of an individual's communication within a social or organizational hierarchy, which can influence the exchange and interpretation of information.

Hierarchical Organizations

Structures where various levels of authority and a downward flow of commands characterize management and operational processes.