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Question #49271

A tax on petrol is likely to ?

Options:

A) generate a deadweight loss that is unaffected by the time period over which it is measured

B) cause a greater deadweight loss in the long run when compared to the short run

C) None of these answers

D) cause a greater deadweight loss in the short run when compared to the long run.

Answer: A tax on petrol is likely to cause a greater deadweight loss in the long run when compared to the short run.

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