Figure 8-23

question 21

Multiple Choice

Figure 8-23.The figure represents the relationship between the size of a tax and the tax revenue raised by that tax.
-Refer to Figure 8-23.If the economy is at point A on the curve,then a small increase in the tax rate will

• A)increase the deadweight loss of the tax and increase tax revenue.
• B)increase the deadweight loss of the tax and decrease tax revenue.
• C)decrease the deadweight loss of the tax and increase tax revenue.
• D)decrease the deadweight loss of the tax and decrease tax revenue.

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Definitions:

Centralization

The concentration of decision-making authority at the top levels of an organization's management hierarchy.

Power Sharing

A practice or arrangement where control, authority, or influence over decision-making processes is distributed among various stakeholders or groups to ensure fair and equitable participation.

Prolonged

Continuing for a long time or longer than usual.

Highly Political

Describes environments or situations where power dynamics, influence, and strategic maneuvers play a significant role in decision-making and outcomes.