It Does Not Matter Whether a Tax Is Levied on the Buyers

question 14

Multiple Choice

It does not matter whether a tax is levied on the buyers or the sellers of a good because

• A)sellers always bear the full burden of the tax.
• B)buyers always bear the full burden of the tax.
• C)buyers and sellers will share the burden of the tax.
• D)None of the above is correct;the incidence of the tax does depend on whether the buyers or the sellers are required to pay the tax.

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Definitions:

Service

An intangible economic good that involves the provision of labor or expertise rather than a physical product.

Uber

A technology company that offers services such as ride-sharing, food delivery, and a freight carrier platform, primarily known for its mobile app that connects users with drivers.

St. Jude Children's Research Hospital

A pediatric treatment and research facility focused on children's catastrophic diseases, particularly leukemia and other cancers.

Ideas

Creative thoughts or plans that are generated in the mind, often serving as a foundation for innovation, problem-solving, or artistic expression.