The Burden of a Tax Is

question 104

Multiple Choice

The burden of a tax is

• A)the amount of revenue that the government raises from the tax.
• B)what it would cost in alternative tax revenue to provide the same level of service.
• C)greater as the total revenue from the tax decreases.
• D)the amount the taxpayer would have to be given to be just as well off in the presence of the tax as in its absence.

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Definitions:

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a certain period.

Total Cost Schedule

A detailed list that shows the total cost incurred at various levels of output or production.

Total Variable Cost

The sum of all costs that vary with the output level in the production of goods or services.

Total Fixed Cost

The cumulative total of all costs that do not alter in response to the quantity of production or output.