Question 44 2 pts The net cost to society from the imposition of a tax is...

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Answer 1

Answer #1

Option E

The net cost to society from the imposition of a tax is also known as dead weight loss.
It is also known as excess burden of economic efficiency that occurs when equilibrium for a good or service is not achieved.
Dead weight loss is a cost to society developed by market inefficiency and can be relevant to any shortage caused by an unskilled allocation of resources.
Dead weight loss occurs when customers do not feel the cost of good or service is rationalised when compared to the perceived utility, they are less likely to purchase the item.
Price ceilings such as rent controls,pr price floors, minimum wage etc. Can create dead weight losses.

Answer 2

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