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    Economics Principles and Policy Study Set 2
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    Exam 17: Taxation and Resource Allocation
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    A Tax Has an Excess Burden Whenever
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A Tax Has an Excess Burden Whenever

Question 194

Question 194

Multiple Choice

A tax has an excess burden whenever


A) people are unable to alter their behavior to avoid paying it.
B) government seeks to raise it.
C) it raises a great deal of revenue.
D) it induces people to change their behavior.

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