The Total Welfare Associated with a Market That Includes a Government

question 79

Multiple Choice

The total welfare associated with a market that includes a government sales tax equals

• A) consumer surplus plus producer surplus.
• B) consumer surplus plus producer surplus minus government tax revenue.
• C) consumer surplus plus producer surplus plus government tax revenue.
• D) the government tax revenue.

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Definitions:

United States

A country in North America consisting of 50 states and a federal district, known for its significant influence on world economics, politics, and culture.

Oil

A viscous liquid derived from petroleum, crude oil, or plants, used as fuel, in manufacturing, and as a base for many chemicals.

Consumption

The use of goods and services by households or individuals, often measured to understand economic activity and trends.