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4 Cards in this Set
- Front
- Back
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deadweight loss
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the fall in total surplus that results from a market distortion such as a tax
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Taxes cause deadweight losses because ....
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they prevent buyers and sellers from realizing some of the gains from trade
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the greater the elasticties of supply and demand the ______ the deadweight loss of a tax
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greater
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Laffer Curve
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the curve that demestrates how reducing taxes may increase governemtn revenues
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