In the context of public finance, 'Deadweight Loss' refers to:
A. Loss due to inflation
B. Loss due to natural disasters
C. Loss of foreign exchange
D. Loss of economic efficiency due to market distortion
Answer: Option D
Solution (By JKSSB Mock Tests)
Deadweight loss is the loss of economic efficiency that occurs when the equilibrium quantity is not produced due to taxes, subsidies, monopolies or other market distortions.
Explanation:
Green New Deal proposals typically combine ambitious climate targets with large public investment in clean energy and infrastructure, together with social policies intended to ensure a just transition.
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