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:

Specialization

The process in economics and production where individuals or entities focus on a narrow area of expertise to increase efficiency and output.

Professional Mourners

Individuals hired to attend funerals and exhibit signs of grief, a practice seen in various cultures to honor the deceased.

Online Sellers

Businesses or individuals that sell goods or services over the internet.

Opportunity Cost

The cost of the next best alternative foregone when making a decision.