If the Tax on a Good Is Increased from $0

question 62

Multiple Choice

If the tax on a good is increased from $0.30 per unit to $0.90 per unit,the deadweight loss from the tax

• A)remains constant.
• B)increases by a factor of 4.
• C)increases by a factor of 9.
• D)increases by a factor of 16.

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Definitions:

Crossed Extensor Reflex

The crossed extensor reflex is a reflex action that involves the contraction of muscles opposite to the side of a painful stimulus to maintain balance and posture.

Tack

A small, sharp, pointed nail, often used for fastening materials.

Dorsal Ramus

A branch of a spinal nerve that innervates certain components of the back muscles and the skin of the back.

Dorsal Thorax

The back portion of the chest area, encompassing the region where the rib cage and spine are located.