To Fully Understand How Taxes Affect Economic Well-Being, We Must

Multiple Choice

To fully understand how taxes affect economic well-being, we must

A) assume that economic well-being is not affected if all tax revenue is spent on goods and services for the people who are being taxed.
B) compare the taxes raised in the United States with those raised in France.
C) compare the reduced welfare of buyers and sellers to the amount of revenue the government raises.
D) remember that taxes reduce the welfare of buyers, increase the welfare of sellers, and raise government revenue.