Determine whether the statements is true, false, or uncertain.  If the statement is false or uncertain, please correct the statement to make it true.  If the statement is true, please explain your answer briefly.  Include a short definition of any underlined term.  1. A corrective tax creates a deadweight loss, reducing economic efficiency.

Principles of Economics, 7th Edition (MindTap Course List)
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ISBN:9781285165875
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Chapter10: Externalities
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Determine whether the statements is true, false, or uncertain.  If the statement is false or uncertain, please correct the statement to make it true.  If the statement is true, please explain your answer briefly.  Include a short definition of any underlined term. 

1. A corrective tax creates a deadweight loss, reducing economic efficiency.

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