Why do economists regard who is legally responsible for paying the tax to be irrelevant?

What will be an ideal response?


Economists regard who is legally responsible for paying a tax to be irrelevant because this fact doesn't have any bearing on who shoulders the actual economic burden of the tax.

Economics

You might also like to view...

By setting MR = MC, a competitive firm decides to sell 100 units when the market price is $20. The average cost of producing the 100 units is $18 per unit. If the firm has fixed costs of $500, then the firm should

a. shutdown b. expand production c. exit the industry d. increase their price

Economics

Refer to Scenario 1-3. Using marginal analysis terminology, what is another economic term for the incremental revenue received from the sale of the last 400 t-shirts?

A) sales revenue B) marginal revenue C) gross earnings D) gross profit

Economics

The ________ analysis considers the ability of domestic and foreign prices to adjust to devaluation in the short run

A) pass-through B) absorption C) adjustment mechanism D) currency contract period

Economics

Due to a tax rebate before the election, there was an increase in the spending power of individuals. The unpredicted increase in the demand for goods and services caused a _____

a. macroeconomic shortage b. macroeconomic surplus c. recession d. depression

Economics