Taxes and Subsidies' Effects on the Government Budget

How do government interventions in the markets for particular goods effect the government's budget? This lesson looks at taxes and subsidies and compares the impact each intervention has on a government's revenues and costs.
More resources for economics students and teachers at econclassroom.com/?page_id=5870

[@eatthebaek7748]

Thank you, this is a great explanation.

[@rebayreborn3348]

Your explanation is really clear. It helps me understand this chapter a lot. Thank you!

[@paullim4550]

Excellent

[@oumdarineoum4416]

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[@NimW]

great, thanks.

[@aquam3]

What I want to know is, what if the government is giving a subsidy to a producer of a product, but taxing the consumer? Like with oil, does the US government have a net gain or loss on oil subsidies and taxes?