Of the Following Items,which Is/are Most Important in Determining the Distribution

question 156

Multiple Choice

Of the following items,which is/are most important in determining the distribution of tax burden?

• A) the person who is legally responsible for paying the tax
• B) the elasticities of supply and demand
• C) the desired level of tax revenue
• D) whether the tax is on income,wealth,sales,or imports
• E) the dollar amount of the tax

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Definitions:

Natural Resource

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Depreciable Asset

An asset that loses value over time due to usage, wear and tear, or obsolescence, which can be an expense on the income statement over its useful life.

Fixed Asset

A long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.

Intangible

Assets that lack physical substance but hold value for a firm, such as patents, trademarks, and goodwill.