Asked by
Abrar 5600011
on Nov 17, 2024Verified
The government's benefit from a tax can be measured by
A) consumer surplus.
B) producer surplus.
C) tax revenue.
D) consumer surplus plus producer surplus.
Tax Revenue
The income governments procure through the levy of taxes.
Consumer Surplus
The variance between the total consumers are prepared to invest in a good or service and what they end up investing.
Producer Surplus
The difference between the amount producers are willing to accept for a good or service and the higher market price they actually receive.
- Estimate the revenue generated by the implementation of a taxation measure.
Verified Answer
AR
Learning Objectives
- Estimate the revenue generated by the implementation of a taxation measure.