Consider the following two statements:
1) “A tax that has no deadweight loss cannot raise any revenue for the government.”
2) “A tax that raises no revenue for the government cannot have any deadweight loss.” Which one, if any, is correct? Explain.

Question

Consider the following two statements: 
1) “A tax that has no deadweight loss cannot raise any revenue for the government.”
 2) “A tax that raises no revenue for the government cannot have any deadweight loss.” Which one, if any, is correct? Explain.

Quizplus · Accepted Answer

The Answer of Consider the following two statements: 
1) “A tax that has no deadweight loss cannot raise any revenue for the government.”
 2) “A tax that raises no revenue for the government cannot have any deadweight loss.” Which one, if any, is correct? Explain.

Consider the Following Two Statements