The Ultimate Economic Burden of a Tax Is Best Captured

question 99

Multiple Choice

The ultimate economic burden of a tax is best captured by:

• A) the marginal tax rate.
• B) the effective tax rate.
• C) the average tax rate.
• D) the proportional tax rate.
• E) None of the choices are correct.

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Definitions:

Barriers to Free Trade

Restrictions, such as tariffs, quotas, and regulations, imposed by governments to control international trade and protect domestic industries.

International Allocation

The distribution of resources, goods, or capital among countries around the globe according to various economic factors and policies.

Comparative Advantage

The ability of an individual, company, or country to produce goods or services at a lower opportunity cost than competitors.