As the Tax on a Good Increases from $1 Per

question 34

Multiple Choice

As the tax on a good increases from $1 per unit to $2 per unit to $3 per unit and so on,the

• A)tax revenue increases at first,but it eventually peaks and then decreases.
• B)deadweight loss increases at first,but it eventually peaks and then decreases.
• C)tax revenue always increases,and the deadweight loss always increases.
• D)tax revenue always decreases,and the deadweight loss always increases.

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Definitions:

Distressing Thoughts

Unpleasant and upsetting ideas or mental images that persistently plague the mind.

Past Experiences

The collection of events and occurrences in one's life that shapes their behavior, preferences, and reactions.

Counterconditioning

A therapy technique where a person is taught to replace an undesirable response to a stimulus with a more desirable one.

Resistance

In psychotherapy, the patient's unwillingness to discuss or approach certain topics, thoughts, or experiences.