Asked by Vanessa Ramirez on May 11, 2024
Verified
Tax revenue equals the size of the tax multiplied by the quantity sold in the market after the tax is levied.
Tax Revenue
The income that is gained by governments through taxation, which is used to fund public services and government obligations.
Tax
A compulsory financial charge imposed by a government on individuals or entities to fund public expenditures, providing revenue for government functions.
- Comprehend the relationship between tax size, tax revenue, and deadweight loss.
Verified Answer
HW
Harry WilliamMay 11, 2024
Final Answer :
True
Explanation :
Tax revenue is calculated by multiplying the per unit tax by the quantity of goods sold in the market after the tax imposition, reflecting the government's earnings from the tax.
Learning Objectives
- Comprehend the relationship between tax size, tax revenue, and deadweight loss.