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    Principles of Economics Study Set 8
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    Exam 8: Applications: The Costs of Taxation
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    Suppose the Government Increases the Size of a Tax by 20
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Suppose the Government Increases the Size of a Tax by 20

Question 79

Question 79

Multiple Choice

Suppose the government increases the size of a tax by 20 percent. The deadweight loss from that tax


A) increases by 20 percent.
B) increases by more than 20 percent.
C) increases but by less than 20 percent.
D) decreases by 20 percent.

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