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.

Question

Quizplus · Accepted Answer

The government's benefit from a tax is measured by tax revenue, which is the amount of money collected from the tax. Consumer surplus and producer surplus are measures of benefit for consumers and producers, respectively, not for the government.

The Government's Benefit from a Tax Can Be Measured by