Which of the following statements is true about taxes?
A) Government revenue from a tax is always greater than the loss of producer surplus and consumer surplus.
B) Taxes always create more deadweight loss than do price ceilings and price floors.
C) Taxes decrease both consumer surplus and producer surplus while creating a deadweight loss.
D) Both answers A and C are correct.
Correct Answer:
Verified
Q39: Q40: Q41: A minimum wage set above the equilibrium Q42: A tax is imposed on the sale Q43: The amount of a tax paid by Q45: A good has a downward- sloping demand Q46: The government of Healthyland imposes a tax Q47: In the market for books, initially there Q48: In order to have an effect, a Q49: The government raises the tax on shirts.
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