Which of the following tools help us evaluate how taxes affect economic well-being?
(i)consumer surplus
(ii)producer surplus
(iii)tax revenue
(iv)deadweight loss
A)(i) and (ii) only
B)(i), (ii), and (iii) only
C)(iii) and (iv) only
D)(i), (ii), (iii), and (iv)

Question

Quizplus · Accepted Answer

All four tools—consumer surplus, producer surplus, tax revenue, and deadweight loss—are used to evaluate the impact of taxes on economic well-being by analyzing changes in market efficiency and distribution of benefits.

Which of the Following Tools Help Us Evaluate How Taxes