When a Tax Is Imposed on Some Good,the Lost Consumer

question 112

Multiple Choice

When a tax is imposed on some good,the lost consumer surplus and producer surplus both typically end up as

• A) additional revenues for firms.
• B) lower prices for consumers.
• C) more units of output bought and sold.
• D) increased social welfare.
• E) tax revenue and deadweight loss.

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Definitions:

Phonemes

The basic distinctive units of sound in a language that distinguish one word from another, for example, the sounds /p/, /b/, /d/, and /t/ in the English words "pad", "bat", "bad", and "tap".

Morphemes

The smallest grammatical units in a language that carry meaning; they can be words or parts of words (like suffixes or prefixes).

Syntax

The set of rules that governs the structure of sentences in a language.

Insight

The ability to understand the inner nature of things or to gain an intuitive understanding of complex situations.