If the Tax on a Good Is Increased from $1

question 133

Multiple Choice

If the tax on a good is increased from $1 per unit to $4 per unit, the deadweight loss from the tax increases by a factor of

• A)5.
• B)9.
• C)16.
• D)24.

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Definitions:

Love Withdrawal

A form of psychological punishment where love, support, or approval is withheld to control or influence behavior.

Inductive Technique

A reasoning approach that moves from specific instances to a generalized conclusion or theory.

Warmth-coldness

A psychological dimension characterizing interpersonal relationships or personality traits, ranging from warmth (friendly, compassionate) to coldness (unfriendly, indifferent).

Restrictiveness-permissiveness

A spectrum describing parenting or educational styles, with restrictiveness involving strict rules and permissiveness entailing more freedom and fewer rules.