Acton Institute Powerblog

Understanding tax revenue and deadweight loss

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Note: This is post #12 in a weekly video series on basic microeconomics.

Why do taxes exist? What are their effects? In this video by Marginal Revolution University, economist Alex Tabarrok explains how taxes affect consumer surplus and producer surplus. He also discusses the concept of deadweight by considering a real-world example from the 1990s: taxing luxury yachts.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: Who pays the tax?

Acton University 2015 Lecture Bundle

Acton University 2015 Lecture Bundle

Own all 96 of the lectures from Acton University 2015 on a USB flash drive with this inexpensive bundle. Valued at $191, these lectures were recorded live at Acton University 2015 sessions. The drive itself comes with lectures numbered, including the lecturer and course title in the file name. Includes

Plenary Lectures from:

Dr. Samuel Gregg, Director of Research Acton Institute and author of Becoming Europe

Rev. Robert Sirico, co-founder of the Acton Institute and author of Defending the Free Market

Dr. Gregory Thornbury, President of the King's College

Joel Salatin, Entrepreneur and Alternative Farmer

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Charlie Self, author of Flourishing Churches and Communities: A Pentecostal Primer on Faith, Work, and Economics for Spirit-Empowered Discipleship
Michael Butler, author of Creation and the Heart of Man: An Orthodox Perspective on Environmentalism
Vincent Bacote, Director of the Center for Applied Christian Ethics at Wheaton College                
Anthony Bradley, author of Keep Your Head Up and Liberating Black Theology


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Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).