Determining Whether the Burden of Taxes Falls on Consumers, Workers

question 19

Multiple Choice

Determining whether the burden of taxes falls on consumers, workers, or owners of other factors of production is:

• A) tax incidence analysis.
• B) government spending theory.
• C) public interest theory.
• D) public choice theory.

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Definitions:

Expected Value Analysis

A form of analysis that assigns likelihoods (probabilities) to various inputs, thus incorporating uncertainty directly into the output (answer).

Probabilities

A measure representing the likelihood or chance of certain events occurring, expressed as a number between 0 and 1.

Uncertainty

A lack of definite knowledge or predictability about outcomes, often factored into decision-making and risk assessments.

Present Value Index

An index computed by dividing the total present value of the net cash flow to be received from a proposed capital investment by the amount to be invested.