When a Product Is Taxed

question 120

Multiple Choice

When a product is taxed,

• A) part of the initial consumer surplus goes to the government as revenue.
• B) part of the initial consumer surplus becomes a deadweight loss.
• C) the producer surplus never changes because consumers pay taxes, not producers.
• D) Both answers A and B are correct.
• E) Both answers B and C are correct.

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Definitions:

Genetic Resistance

The ability of an organism to naturally withstand environmental pressures, diseases, or pests through inherited characteristics.

Synthetic Pesticides

Man-made chemicals used to kill or control pests that affect plants, animals, and humans.

Genetic Resistance

The ability of an organism to naturally resist diseases, pests, or harsh environmental conditions due to its genetic makeup.

Genetic Resistance

indicates an organism's inherent ability to resist or tolerate infection, parasites, or chemical treatments, often as a result of specific genetic characteristics.