Q
A tax on petrol is likely to ?
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A
A. Generate a deadweight loss that is unaffected by the time period over which it is measured
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B
B. Cause a greater deadweight loss in the long run when compared to the short run
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C
C. None of these answers
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D
D. Cause a greater deadweight loss in the short run when compared to the long run.
Correct Answer:
B. B. Cause a greater deadweight loss in the long run when compared to the short run
