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Deadweight Loss Is the Lost Gains Associated with Transactions That

question 160

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Deadweight loss is the lost gains associated with transactions that do not occur because of market intervention,such as a quota.


Definitions:

Payroll Taxes

Levies placed on either employers or employees, typically based on a proportion of the wages that staff receive from their employers.

Temperance

Moderation or self-restraint, especially in eating and drinking.

Prohibition

The period during which the manufacture, sale, and transportation of alcoholic beverages were banned in the United States through the 18th Amendment to the Constitution (1920-1933).

Tolerance

The need for increasing levels of a drug in order to produce a constant level of effect.

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