The Tax on Gasoline

question 488

Multiple Choice

The tax on gasoline

• A)reduces efficiency by causing large deadweight losses.
• B)reduces efficiency by decreasing consumer surplus and producer surplus.
• C)enhances efficiency by serving as a corrective device in a market with positive externalities.
• D)enhances efficiency by serving as a corrective device in a market with negative externalities.

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Definitions:

Antidepressant

A medication or other intervention that is used to prevent or treat depression by altering brain chemistry, often by increasing levels of serotonin and other neurotransmitters.

Antipsychotic Drugs

Medications used to manage psychosis, including delusions, hallucinations, paranoia, or disordered thought, primarily in conditions like schizophrenia.

Synapses

Points of connection where neurons communicate with each other through chemical and electrical signals.

Hippocampus

A region of the brain associated with memory formation, spatial navigation, and the regulation of emotional responses.