The Burden of a Tax on a Good Is Said

question 119

Multiple Choice

The burden of a tax on a good is said to fall completely on the producers if the:

• A)price paid by consumers for the good declines by the amount of the tax.
• B)price paid by consumers for the good increases by the amount of the tax.
• C)price paid by consumers does not change.
• D)wages received by workers who produce the good increase by the amount of the tax.

---

Definitions:

Mix of Potential Immigrants

The diverse characteristics (such as skills, education, and country of origin) of immigrants considered for entry into a country.

Optimal Quantity

The quantity of a good or service that maximizes a company's profits or an individual's utility, depending on the context.

Standard of Living

This is a measure of the economic prosperity and quality of life in a country or region, often assessed by income levels, access to goods and services, and other socioeconomic factors.

Fiscal Burdens

The financial obligations, such as taxes and debt payments, that a government must bear.