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When does deadweight loss occur to society?
Applying consumer and producer surplus the efficiency costs of a tax:
A tax causes a deadweight loss to society, since less the good is generated and consumed than into the absence of the tax. As an outcome, some mutually beneficial trades in between consumers and producers do not take place.
Capital Account: The capital account deals with long and short-term capital movement.These capital movements are referred to as autonomous because they take place for business o
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