A tax on a good results in no deadweight loss if consumers and producers share the benefits of the tax revenues.

Name: A tax on a good results in no deadweight loss if consumers and producers share the benefits of the tax revenues.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A tax on a good typically results in a deadweight loss because it causes a decrease in the quantity traded, leading to less overall economic efficiency, regardless of how the tax revenue is distributed among consumers and producers.

A Tax on a Good Results in No Deadweight Loss