A tax on a product causes a deadweight loss because:
a. some consumer surplus is transferred from buyers to producers
b. some producer surplus is transferred from producers to consumers.
c. some consumer and producer surplus is transferred to the government.
d. it distorts the incentives of producers and consumers so that the efficient level of output is not produced.
d
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The Japanese yen will appreciate against the dollar if
A) U.S. residents demand more Japanese goods. B) U.S. residents demand fewer Japanese goods. C) Japanese residents demand more U.S. goods. D) none of the above.
The marginal revenue product of a resource is:
a. the marginal product of the resource multiplied by the price of the product it helps to produce. b. the price of the product times the price of the resource. c. larger when the product price is smaller. d. larger when the marginal product is smaller.