A Deadweight Loss Is a Consequence of a Tax on a Good

question 11

Multiple Choice

A deadweight loss is a consequence of a tax on a good because the tax

• A)induces the government to increase its expenditures.
• B)induces buyers to consume less,and sellers to produce less.
• C)increases the equilibrium price in the market.
• D)imposes a loss on buyers that is greater than the loss to sellers.

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Definitions:

Infant Amnesia

The inability of adults to recall personal memories from the first few years of life, due to the undeveloped state of the infant brain.

Hippocampus

A part of the brain involved in learning and memory, located inside the temporal lobe.

Semantic Memories

Semantic memories are a part of our memory responsible for storing information about the world, such as facts and concepts, that is not drawn from personal experience.

Episodic Memories

Memories of specific events or episodes, including contextual details and emotions, that are personally experienced.