The Appropriate Measure of the Benefit from a Tax Is

question 69

Multiple Choice

The appropriate measure of the benefit from a tax is the:

• A)consumer surplus
• B)benefit received by those people who gain from government's expenditure of the tax revenue
• C)producer surplus
• D)government's budget balance, which is increased with more taxes

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Definitions:

Disposable Income

The amount of income left to an individual after taxes have been paid, available for spending, saving or investing.

Product Application

Goods or services created to meet a demand, thereby providing a solution to a customer problem.

Market Demand

The total volume of a product or service desired by consumers at a particular price and time.

Customer Demand

Refers to the quantity and type of goods or services that consumers are willing and able to purchase at various prices during a specified time period.