Use the following to answer questions:
Figure: Taxes and Deadweight Loss
-(Figure: Taxes and Deadweight Loss) In the diagram, the deadweight loss is ______ and government tax revenue is ______.
A) C + E; B
B) C + E; B + D
C) C; E
D) D + F; B + D

Question

Use the following to answer questions:
Figure: Taxes and Deadweight Loss 
-(Figure: Taxes and Deadweight Loss) In the diagram, the deadweight loss is ______ and government tax revenue is ______.
A) C + E; B 
B) C + E; B + D 
C) C; E 
D) D + F; B + D

Quizplus · Accepted Answer

The deadweight loss is the loss of consumer and producer surplus that occurs when a tax is imposed. In the diagram, the deadweight loss is represented by the area C + E. Government tax revenue is the amount of money that the government collects from the tax. In the diagram, government tax revenue is represented by the area B.

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