The Incidence of a Tax Explains What Group Pays the Burden

question 28

True/False

The incidence of a tax explains what group pays the burden of a tax.

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Definitions:

Premiums

Payments made regularly to an insurance company for coverage, often monthly or yearly.

Coinsurance Clause

A provision in an insurance policy that determines the percentage of the cost a policyholder is responsible for after the deductible is met.

Insurance Coverage

The amount and type of protection provided by an insurance policy against various risks or damages.

Coinsurance Clause

A provision in insurance policies requiring the policyholder to bear a portion of the costs of a claim, promoting shared risk.