As the Tax on a Good Increases from $1 Per

question 34

Multiple Choice

As the tax on a good increases from $1 per unit to $2 per unit to $3 per unit and so on,the

• A)tax revenue increases at first,but it eventually peaks and then decreases.
• B)deadweight loss increases at first,but it eventually peaks and then decreases.
• C)tax revenue always increases,and the deadweight loss always increases.
• D)tax revenue always decreases,and the deadweight loss always increases.

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Definitions:

Pupil

The opening in the center of the iris of the eye that regulates the amount of light that enters the eye.

Light Waves

Electromagnetic waves within a certain portion of the electromagnetic spectrum, perceived by the human eye as light.

Proprioception

The sense of the relative position of one's own parts of the body and strength of effort being employed in movement.

Vestibular Sense

The sensory system that provides the leading contribution to the sense of balance and spatial orientation for the purpose of coordinating movement with balance.