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When the Government Imposes an Excise Tax in the Market

Question 117

Multiple Choice

When the government imposes an excise tax in the market, the resulting deadweight loss will:


A) equal the tax revenue paid to the government.
B) be greater than the tax revenue paid to the government.
C) be less than the tax revenue paid to the government.
D) represent the inefficiency from transactions that do not occur as a result of the tax.

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