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.

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Definitions:

Negotiable Instruments

Financial documents, such as checks, drafts, or promissory notes, that guarantee the payment of a specified amount of money to a specific person or entity.

Agent

A person or entity authorized to act on behalf of another (the principal), in dealings with third parties.

Corporation

A legal entity recognized by law as separate from its owners, with its rights and liabilities, capable of conducting business, entering contracts, and owning assets.

Indorsers

Individuals or entities that sign a document (often a negotiable instrument like a cheque) on the back to signify their agreement to transfer title or to guarantee its terms.