Answer-Deadweight loss from a tax is:

Q: Answer-Deadweight loss from a tax is:

Explanation Deadweight loss is the loss in consumer and producer surplus that results from a tax reducing the quantity traded below the efficient level.

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Question

Deadweight loss from a tax is:

A The tax revenue collected by the government Correct Incorrect

B The loss of total surplus that is not transferred to anyone Correct Incorrect

C The cost to the producer of collecting the tax Correct Incorrect

D Zero in all perfectly competitive markets Correct Incorrect

Detailed Solution

Explanation: Deadweight loss is the loss in consumer and producer surplus that results from a tax reducing the quantity traded below the efficient level.

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Deadweight loss from a tax is:

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