The more output that is eliminated by a tax, the _____ the deadweight loss and the _____ the tax revenue collected.

Name: The more output that is eliminated by a tax, the _____ the deadweight loss and the _____ the tax revenue collected.
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Question

Quizplus · Accepted Answer

The more output that is eliminated by a tax, the greater the deadweight loss because there are more transactions that do not occur due to the tax. Additionally, the tax revenue collected is smaller because there are fewer transactions being taxed.

The More Output That Is Eliminated by a Tax, the _____