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    Question

    Deadweight loss from a tax is:  

    A The tax revenue collected by the government Correct Answer Incorrect Answer
    B The loss of total surplus that is not transferred to anyone Correct Answer Incorrect Answer
    C The cost to the producer of collecting the tax Correct Answer Incorrect Answer
    D Zero in all perfectly competitive markets Correct Answer Incorrect Answer

    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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