The benefit received by the government from a tax is measured by:
A)deadweight loss
B)tax revenue
C)equilibrium price
D)total surplus

Question

Quizplus · Accepted Answer

Tax revenue is the income received by the government from levying a tax, and is a direct measure of the benefit received by the government. Deadweight loss is a loss of economic efficiency that occurs when a tax is imposed and reduces economic activity. Equilibrium price and total surplus are not direct measures of the benefit received by the government from a tax.

The Benefit Received by the Government from a Tax Is