The deadweight loss from a tax is called the
A) marginal benefit of the tax.
B) marginal cost of the tax.
C) excess burden of the tax.
D) net gain from taxation.
E) net loss from taxation.

Question

Quizplus · Accepted Answer

The deadweight loss from a tax is referred to as the excess burden of the tax. This loss occurs when the tax reduces the activity and transactions of buyers and sellers, leading to a loss of potential gains from trade. The other options, such as marginal benefit/cost and net gain/loss, do not specifically address the concept of deadweight loss.

The Deadweight Loss from a Tax Is Called the