Asked by Saadak Ahmed Mohamud on Jul 16, 2024
Verified
The sum of the revenue collected by the tax and the excess burden created by the tax is the
A) gross revenue.
B) tax incidence.
C) total tax burden.
D) deadweight loss.
Excess Burden
The cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.
Tax Revenue
The income that is collected by the government through various forms of taxation.
- Evaluate the full extent of a tax's burden, incorporating the tax revenue and the excess weight it carries.
Verified Answer
NG
Nasri GeorgeJul 17, 2024
Final Answer :
C
Explanation :
The total tax burden includes both the revenue collected by the tax and the excess burden (or deadweight loss) created by the tax. This encompasses the full economic cost of the tax to society.
Learning Objectives
- Evaluate the full extent of a tax's burden, incorporating the tax revenue and the excess weight it carries.