If there is a decrease in the deadweight loss of a tax, this means that the tax has an increased economic cost.

Question

Quizplus · Accepted Answer

A decrease in the deadweight loss of a tax indicates that the tax has become more efficient and its economic cost has decreased. The deadweight loss refers to the loss of economic efficiency resulting from the distortions created by the tax, and a decrease in this loss indicates a reduction in the tax's overall impact on the market.

If There Is a Decrease in the Deadweight Loss of a Tax