The Burden of a Tax That Is Imposed on a Good

question 245

Essay

The burden of a tax that is imposed on a good is said to fall completely on the consumers if the:
A.price paid by consumers for the good declines by the amount of the tax.
B.price paid by consumers for the good increases by the amount of the tax.
C.price paid by consumers does not change.
D.wages received by workers who produce the good increase by the amount of the tax.

---

Definitions:

Capital Contributions

Investments or funding provided by owners or shareholders to a business, typically in the form of cash or assets, in exchange for an ownership stake.

Management

The process of directing and controlling resources and activities to achieve specific goals.

Educational Software

Computer applications designed specifically to assist with teaching and learning. They include a wide range of academic subjects and skills.

Unlimited Liability

A legal condition where a business owner or partner can be held personally responsible for the debts and obligations of the business without any limit.