If a tax generates a reduction in surplus that is exactly offset by the tax revenue collected by the government, the tax does not have a deadweight loss.

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Jessica Reyna · Accepted Answer

Final Answer : True, Explanation :  If the reduction in surplus is exactly offset by the tax revenue, then the tax does not have a deadweight loss because the government is able to use the tax revenue to provide public goods and services that benefit society.

If a tax generates a reduction in surplus that is exactly offset by the tax revenue collected by the government, the tax does not have a deadweight loss.

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