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.

---

Definitions:

Annual Dividend

This is the total amount of dividend payments a shareholder receives from a company in one year.

Long-Run Growth Rate

The sustainable rate at which a company or an economy can grow its output over a long period without increasing inflation.

Required Rate of Return

The minimum return an investor expects to achieve for the risk associated with a particular investment.

Expected Dividend

The dividend payout anticipated by shareholders based on the issuing company’s past distributions and future earnings projections.