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The Excess Burden of an Excise Tax

Question 30

Multiple Choice

The excess burden of an excise tax


A) is the price the consumer must pay above the free-market price.
B) reflects the allocative efficiency of the tax.
C) is the deadweight loss created by the tax.
D) is the administrative cost of collecting the tax.
E) is the total cost imposed on the producer by the tax.

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