The Difference Between the Price Consumers Pay and the Price

question 80

Multiple Choice

The difference between the price consumers pay and the price sellers receive after a tax is imposed is equal to the

• A) loss of social welfare from the tax.
• B) dollar amount of the tax.
• C) deadweight loss from the tax.
• D) revenue from the tax.
• E) lost profit from the tax.

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Definitions:

Savings Plan

A systematic approach to setting aside funds to reach financial goals.

Investments

Funds committed into various financial instruments or assets with the expectation of generating income or profit.

Compounded Monthly

Interest that is calculated on the principal and the accumulated interest every month.

Withdrawals

The act of removing funds from an account or investment.