Asked by Camilla Fernandez on Jul 21, 2024
Verified
The incidence of a tax pertains to
A) the degree to which it alters the distribution of income.
B) how easy it is to evade the tax.
C) who actually bears the burden of a tax.
D) the progressiveness or regressiveness of tax rates.
Tax Incidence
The analysis of the effect of a particular tax on the distribution of economic welfare among entities, determining who ultimately bears the cost of the tax.
Burden
The load, duty, responsibility, or stress placed upon an individual or entity.
Distribution of Income
The way in which a nation’s total earnings are divided among its population, or the way in which wealth is shared amongst individuals.
- Understand the concept of tax incidence and how it affects both consumers and producers.
Verified Answer
Learning Objectives
- Understand the concept of tax incidence and how it affects both consumers and producers.
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