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    Principles of Microeconomics
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    Exam 12: The Design of the Tax System
  5. Question
    Why Do Taxes Create Deadweight Losses
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Why Do Taxes Create Deadweight Losses

Question 55

Question 55

Multiple Choice

Why do taxes create deadweight losses


A) They reduce profits of firms.
B) They distort incentives.
C) They cause prices to rise.
D) They create revenue for the government.

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