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For an Excise Tax Which Causes Output in a Market

Question 77

Multiple Choice

For an excise tax which causes output in a market to fall to zero:


A) the tax revenue and deadweight loss are both zero.
B) the tax revenue is positive but there is no deadweight loss.
C) the deadweight loss is equal to the total surplus before the tax.
D) the deadweight loss is equal to the producer's surplus.

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