When a Tax on a Good Is Enacted

question 71

Multiple Choice

When a tax on a good is enacted,

• A)buyers and sellers share the burden of the tax regardless of whether the tax is levied on buyers or on sellers.
• B)buyers always bear the full burden of the tax.
• C)sellers always bear the full burden of the tax.
• D)sellers bear the full burden of the tax if the tax is levied on them;buyers bear the full burden of the tax if the tax is levied on them.

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Definitions:

Sensorimotor

A developmental stage in infants and toddlers, where they explore and understand the world primarily through sensory experiences and motor activities.

Preoperational

Refers to the stage in Jean Piaget's theory of cognitive development where children from 2 to 7 years old engage in symbolic play and struggle with logic and taking the perspective of others.

Concrete Operational

A stage in Piaget's theory of cognitive development (typically ages 7 to 12) where children gain a better understanding of logical operations and are no longer fooled by appearances.

Formal Operational

Refers to one of the stages in Jean Piaget's theory of cognitive development, characterized by the ability to think abstractly, logically, and systematically.