The size of the deadweight loss, or excess burden, of a tax depends on the
A) amount of producer surplus but not the amount of consumer surplus because it is the producers who send the tax revenues to the government.
B) strength of demand.
C) strength of supply.
D) elasticities of demand and supply.
E) number of demanders and the number of suppliers.
D
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When the economy is in macroequilibrium, unintended investment
a. is positive b. is negative c. equals saving d. is zero e. equals intended investment
Why is it customary to report price elasticity of demand in absolute value terms, while cross elasticities and income elasticities are reported with their sign attached?
The issue of fairness versus efficiency arises
a. only in a command economy. b. only in a market economy. c. in neither a command nor a market economy. d. in both a command and a market economy.
The standard economists use to assess whether an activity should be undertaken is
a. majority vote b. the marginal benefit assessment. c. the gold standard d. economic efficiency.