Which of the following statements about correctivetaxes is generally NOT true?a. They increase what consumers pay for the good.b. They raise government revenue.c. They reduce the quantity sold in a market.d. They cause deadweight losses.

Which of the following statements about correctivetaxes is generally NOT true?a. They increase what consumers pay for the good.b. They raise government revenue.c. They reduce the quantity sold in a market.d. They cause deadweight losses.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Costs Of Taxation

Section8.1: The Deadweight Loss Of Taxation

Problem 1QQ

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Question

Which of the following statements about corrective
taxes is generally NOT true?
a. They increase what consumers pay for the good.
b. They raise government revenue.
c. They reduce the quantity sold in a market.
d. They cause deadweight losses.

Definition Definition Cost to society created by market inefficiency when supply and demand are not in market equilibrium.

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