A deadweight loss occurs as a result of a per-unit tax because:
a. the government spends tax dollars less efficiently than do private citizens
b. there is a decline in output for units for which the marginal benefit exceeds the marginal cost.
c. taxes cause an overproduction of output relative to the socially efficient level or production.
d. a surplus is created.
b
Economics
You might also like to view...
Refer to the table above. In autarky the relative price of X (in terms of Y) in A would be
A) 3/4. B) 4/3. C) 3/9. D) $3.
Economics
A leftward shift in supply could be caused by: a. an improvement in productive technology. b. a decrease in income
c. some firms leaving the industry. d. a fall in the price of inputs to the industry.
Economics