A sales tax on sellers a good leads to a loss of consumer ...

[bobbysung]

A sales tax on sellers a good leads to a loss of consumer surplus, but a price ceiling or a price floor on that same product will not.
 
  Indicate whether the statement is true or false

Question 2

Which of the following applies to the tragedy of the commons? I. In the absence of government action, there is an absence of incentives to prevent the overuse of the common resource. II.
 
  When consumers take account of the marginal social benefit and marginal social cost, overuse of the resource occurs. III. Even with government action, it is impossible for an efficient level of output to be achieved. A) I only
  B) I and II
  C) II and III
  D) I, II and III

[pangili4]

Answer to Question 1

FALSE

Answer to Question 2

A