Question

Which of the following best defines government revenue?

a. Government programs designed to improve economic equity
b. Income the government receives from taxes and other nontax sources
c. Money the government spends to buy goods and services
d. A tax for which high-income earners pay a larger fraction of their income in taxes than low-income earners

Answer 1

The correct answer is B.

Goverment revenue is primarily obtained through the tax system, although there can be some other revenue sources, for example, the profits generated by public companies. Subsequently these revenues are directed to programs that aim to redistribute the income generated in the country in order to reach equity improvements.