The actual incidence (or burden) of a tax refers to
a. the governmental agency responsible for collecting the tax.
b. who actually bears the burden of a tax once changes in market prices are taken into account.
c. the degree of progressiveness in the rate structure of the tax.
d. who the tax is legally or statutorily imposed on.
B
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Refer to Scenario 15.2. If the interest rate were 20%, Furry Software should
A) retool the offices. B) rewire the network. C) move to Southern California. D) be indifferent between retooling and rewiring. E) be indifferent between retooling and moving.
If the Federal Reserve sells bonds, the short-run effects will be
a. an increase in the money supply and lower real interest rates. b. a decrease in the money supply and lower real interest rates. c. an increase in the money supply and higher real interest rates. d. a decrease in the money supply and higher real interest rates.
The consumer's optimal choice is the one in which the marginal utility per dollar spent on good X is
a. equal to the marginal utility per dollar saved on good X. b. greater than the marginal utility per dollar spent on good Y. c. equal to the marginal utility per dollar spent on good Y. d. less than the marginal utility per dollar spent on good Y.
A perfectly competitive firm's marginal revenue is:
A. sometimes below and sometimes above the selling price. B. less than the selling price. C. greater than the selling price. D. equal to the selling price.