Which of the Following Statements About the Burden of a Tax

question 14

Multiple Choice

Which of the following statements about the burden of a tax is correct?

• A) The tax burden generated from a tax placed on a good that consumers perceive to be a necessity will fall most heavily on the sellers of the good.
• B) The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected.
• C) The distribution of the burden of a tax is determined by the relative elasticities of supply and demand and is not determined by legislation.
• D) The tax burden falls most heavily on the side of the market (buyers or sellers) that is most willing to leave the market when price movements are unfavourable to them.

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Definitions:

Ballast Water

Water carried in ships' ballast tanks to improve stability and balance, which, when discharged, can introduce invasive aquatic species to new environments.

Autonomy

The degree to which a job provides the employee with the freedom, independence, and discretion to schedule their work and determine how it is done.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.

Control

The power to influence or direct people's behavior or the course of events.