Which of the following best defines government revenue?

• A. The money collected by the government from taxes, fees, and other sources.
• B. The total value of goods and services produced within a country.
• C. The income earned by private businesses in the economy.
• D. The amount of money spent by the government on public services.

Answer: (A)

Verified step by step guidance

1. Understand the concept of government revenue: It refers to the total income that the government collects to fund its activities and public services.
2. Identify the sources of government revenue: These typically include taxes (such as income tax, sales tax), fees (like licensing fees), and other sources (such as fines or profits from government-owned enterprises).
3. Distinguish government revenue from other economic terms: For example, GDP measures the total value of goods and services produced, not government income; private business income is separate from government revenue; and government spending is about expenditure, not revenue.
4. Match the definition that aligns with government revenue: Look for the option that describes money collected by the government from taxes, fees, and other sources.
5. Confirm that the correct choice is the one describing government revenue as the money collected by the government from taxes, fees, and other sources.