The loss in total surplus resulting from a tax is called
A)a deficit.
B)economic loss.
C)deadweight loss.
D)inefficiency.

Question

Quizplus · Accepted Answer

Deadweight loss refers to the loss in total surplus resulting from a tax. It is the reduction in economic efficiency that occurs when the price of a good or service is set above the marginal cost of production. Deadweight loss represents a loss of economic welfare to society that is not compensated by any gain to government revenue.

The Loss in Total Surplus Resulting from a Tax Is