Can someone help me with an Economics Question??

Question

Here is the question:

Dedweight costs from taxation are associated with

answer choices:

a) taxes that influence the decisions that people make.

b) taxes that target expenditures on survivor benefits for social security.

c) taxes that have no efficiency losses.

d) lump-sum payments.

I am leaning towards C as my answer, but I am not sure.... Please help. Thanks

Answer 1

a) taxes that influence the decisions that people make.

This sometimes unintended function of tax will affect market equilibrium price and quantity, pressing on people's decisions leading toward less markets turnovers (q-ty sold/price) and reducing total surplus (customer+supplier+government)

http://www.econmodel.com/classic/terms/s...