The difference between the loss of surplus to taxpayers and the tax revenue collected is called:

Question

Quizplus · Accepted Answer

Deadweight loss refers to the economic inefficiencies that occur when the equilibrium for supply and demand is not achieved due to market inefficiencies or distortions such as taxes or price controls. It represents the loss of surplus to taxpayers and consumers that could have been achieved in a more efficient market, but was lost due to market inefficiencies. Tax revenue collected is not necessarily the same as the loss of surplus, as some tax revenue may be offset by increased efficiency or other benefits.

The Difference Between the Loss of Surplus to Taxpayers and the Tax