An excise tax on a good will always produce a deadweight loss.

Name: An excise tax on a good will always produce a deadweight loss.
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An excise tax on a good typically leads to a deadweight loss because it causes a decrease in the quantity traded below the level that would occur in a free market, leading to inefficiencies where the cost to sellers and buyers exceeds the revenue gained by the government.

An Excise Tax on a Good Will Always Produce a Deadweight