A Deadweight Loss Is a Consequence of a Tax on a Good

question 11

Multiple Choice

A deadweight loss is a consequence of a tax on a good because the tax

• A)induces the government to increase its expenditures.
• B)induces buyers to consume less,and sellers to produce less.
• C)increases the equilibrium price in the market.
• D)imposes a loss on buyers that is greater than the loss to sellers.

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Definitions:

Secured Obligation

A debt or other type of financial obligation that is backed by collateral to reduce the risk of non-payment.

Secured Party

A lender or creditor in a secured transaction who has a legal interest in the collateral offered by the borrower.

Party Owes

This term suggests the existence of a debt or obligation that one individual or entity holds towards another.

Redevelopment Capital

Funds allocated for investing in the improvement and revitalization of existing areas or structures, typically for economic growth.