Card 12 / 59: Suppose the government in a closed country imposes a tax of 25 percent on working people's wages (w) and redistributes the tax to nonworking people (n) in society as a lump sum distribution. This causes working people to reduce labor by 20 percent. After the tax is levied and distributed, what is the deadweight loss to society relative to a lump sum tax system?
A) $0
B) 0.25w
C) 0.20w
D) 0.05w

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