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

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Which of the following statements about corrective taxes is generally NOT true?

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 raise government revenue.
b. They reduce the quantity sold in a market.
c. They increase what consumers pay for the good.
d. They cause deadweight losses.

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