All of the following occur whenever a government taxes a product except
A) the quantity consumed of that product falls.
B) the price of that product rises.
C) there will be no excess burden if the government's tax revenue is sufficiently large to offset the deadweight loss.
D) the marginal benefit of the last unit sold exceeds the marginal cost of producing it.
C
You might also like to view...
The fastest growing nations today are those with
A) few funds spent on research and development. B) government intervention in markets to ensure high prices. C) the least saving. D) the fastest growing exports and imports. E) barriers that significantly limit international trade.
A falling interest rate ________ the number of investment projects having a positive profit rate, and thus ________ the amount of output that firms demand for themselves
A) increases, raises B) increases, lowers C) decreases, raises D) decreases, lower