A tax has a deadweight loss because
A. . it induces the government to spend more.
B. . it induces buyers to consume less and sellers to produce less.
C. . it causes a disequilibrium in the market.
D. . the loss to buyers is greater than the loss to sellers.
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Deadweight loss is the
A. . reduction in total surplus that results from a tax.
B. . loss of profit to businesses when a tax is imposed.
C. . reduction in consumer surplus when a tax is placed on buyers.
D. . decline in government revenue when taxes are reduced in a market.
When the government places a tax on a product
A. . the cost of the tax to buyers and sellers will be less than the revenue raised from the tax by the government.
B. . the cost of the tax to buyers and sellers will equal the revenue raised from the tax by the government.
C. . the cost of the tax to buyers and sellers exceeds the revenue raised from the tax by the government.
D. . without additional information, such as the elasticity of demand for this product, it is impossible to compare tax cost with tax revenue.
Total tax revenue received by government can be expressed as
A. . T/Q.
B. . T+Q.
C. . T×Q.
D. . T-Q.
Suppose a tax is imposed on the buyers of a product. The burden of the tax will fall
A. . entirely on the buyers.
B. . entirely on the sellers.
C. . entirely on the government.
D. . on both the buyers and the sellers.