The tax revenue that is generated by a government tax is counted ...

[Pineapplelove6]

The tax revenue that is generated by a government tax is counted towards total welfare.
 
  Indicate whether the statement is true or false

Question 2

A per unit subsidy increases both consumer and producer surplus, but results in a deadweight loss.
 
  Indicate whether the statement is true or false

[enass]

Answer to Question 1

True . The tax will benefit either producers or consumers or both, but will also generate a dead weight loss in total welfare.

Answer to Question 2

True . The government expenditure more than offset the gains to consumer and producer surplus resulting in a deadweight loss.

[Pineapplelove6]

Thanks for the timely response, appreciate it

[kishoreddi]

TYSM