Which of the Following Statements Correctly Describes the Relationship Between

question 43

Multiple Choice

Which of the following statements correctly describes the relationship between the size of the deadweight loss and the amount of tax revenue as the size of a tax increases from a small tax to a medium tax and finally to a large tax?

• A)Both the size of the deadweight loss and tax revenue increase.
• B)The size of the deadweight loss increases,but the tax revenue decreases.
• C)The size of the deadweight loss increases,but the tax revenue first increases,then decreases.
• D)Both the size of the deadweight loss and tax revenue decrease.

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Definitions:

Industrial Infrastructure

The underlying foundation of facilities, systems, and services needed for the operation of an industry, including transportation, communication, and utilities.

Business Norms

Accepted practices, behaviors, and standards within the business community, often varying by industry or region.

Technological Environment

The aspect of the external business environment that relates to the development, availability, and application of technology affecting businesses.

Extensive Customization

Extensive customization refers to the process of tailoring products, services, or experiences to meet the specific needs or preferences of individual customers, often involving significant modifications.