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:

Pay Systems

The framework within an organization that determines how employees are compensated, including salaries, bonuses, raises, and incentives.

Accounting Results

The outcomes derived from the accounting processes, including financial statements and reports that reflect the financial performance and condition of an entity.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Profitable Projects

Projects that generate a financial gain or benefit exceeding their costs and investments.