For the purpose of analyzing the gains and losses from a tax on a good,we use tax revenue as a direct measure of the
A)government's benefit from the tax.
B)government's loss from the tax.
C)deadweight loss of the tax.
D)overall net gain to society of the tax.

Question

Quizplus · Accepted Answer

Tax revenue represents the total amount of money that the government collects from the tax on the good. This money can be used to fund public goods and services, such as education, healthcare, and infrastructure, which benefit society as a whole. Therefore, tax revenue is a direct measure of the government's benefit from the tax.

For the Purpose of Analyzing the Gains and Losses from a Tax