The benefit that government receives from a tax is measured by
A)the change in the equilibrium quantity of the good.
B)the change in the equilibrium price of the good.
C)tax revenue.
D)total surplus.

Question

Quizplus · Accepted Answer

The benefit that the government receives from a tax is measured by the tax revenue it generates. Tax revenue is the amount of money collected by the government from the tax imposed on the buyers and/or sellers of a good. This revenue can be used to fund government programs and provide public goods and services.

The Benefit That Government Receives from a Tax Is Measured