If the Size of a Tax Triples, the Deadweight Loss

question 62

True/False

If the size of a tax triples, the deadweight loss increases by a factor of six.

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Consumer Price Index

A metric that quantifies the average shift over time in the costs that urban residents incur for a specified set of consumer goods and services.

CPI

Consumer Price Index; a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

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