Which of the following statements best describes the term andlsquo;Deadweight Lossandrsquo;, mentioned in the Economic Survey 2019-20?a)A loss either in consumer surplus or producer surplus or both on account of adequate output not being produced in the economy.b)A loss in ad valorem tax revenue with respect to weight losing goods like sugarcane.c)It refers to a loss in the value of tangible good on account of its wear and tear over a period of time.d)It refers to the losses incurred by the firms on account of shrink in its value amidst competition in the market.Correct answer is option 'A'. Can you explain this answer?

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Which of the following statements best describes the term ‘Deadweight Loss’, mentioned in the Economic Survey 2019-20?

a)
A loss either in consumer surplus or producer surplus or both on account of adequate output not being produced in the economy.
b)
A loss in ad valorem tax revenue with respect to weight losing goods like sugarcane.
c)
It refers to a loss in the value of tangible good on account of its wear and tear over a period of time.
d)
It refers to the losses incurred by the firms on account of shrink in its value amidst competition in the market.

Correct answer is option 'A'. Can you explain this answer?

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Which of the following statements best describes the term ‘Deadw...

The deadweight loss is a cost to the society created by market inefficiency when adequate output is not produced. In strict terms, it represents loss either in consumer surplus or producer surplus or both on account of adequate output not being produced in the economy. The imposition of taxes on a product is one such example because the producer passes a portion of the tax burden to consumers which reduces the amount of output to be produced. Therefore, the correct answer is (a).

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Which of the following statements best describes the term ‘Deadweight Loss’, mentioned in the Economic Survey 2019-20?a)A loss either in consumer surplus or producer surplus or both on account of adequate output not being produced in the economy.b)A loss in ad valorem tax revenue with respect to weight losing goods like sugarcane.c)It refers to a loss in the value of tangible good on account of its wear and tear over a period of time.d)It refers to the losses incurred by the firms on account of shrink in its value amidst competition in the market.Correct answer is option 'A'. Can you explain this answer?

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Which of the following statements best describes the term ‘Deadweight Loss’, mentioned in the Economic Survey 2019-20?a)A loss either in consumer surplus or producer surplus or both on account of adequate output not being produced in the economy.b)A loss in ad valorem tax revenue with respect to weight losing goods like sugarcane.c)It refers to a loss in the value of tangible good on account of its wear and tear over a period of time.d)It refers to the losses incurred by the firms on account of shrink in its value amidst competition in the market.Correct answer is option 'A'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following statements best describes the term ‘Deadweight Loss’, mentioned in the Economic Survey 2019-20?a)A loss either in consumer surplus or producer surplus or both on account of adequate output not being produced in the economy.b)A loss in ad valorem tax revenue with respect to weight losing goods like sugarcane.c)It refers to a loss in the value of tangible good on account of its wear and tear over a period of time.d)It refers to the losses incurred by the firms on account of shrink in its value amidst competition in the market.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements best describes the term ‘Deadweight Loss’, mentioned in the Economic Survey 2019-20?a)A loss either in consumer surplus or producer surplus or both on account of adequate output not being produced in the economy.b)A loss in ad valorem tax revenue with respect to weight losing goods like sugarcane.c)It refers to a loss in the value of tangible good on account of its wear and tear over a period of time.d)It refers to the losses incurred by the firms on account of shrink in its value amidst competition in the market.Correct answer is option 'A'. Can you explain this answer?.

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