When People Alter Behavior in Response to Taxes, Which of the Following

question 94

Multiple Choice

When people alter behavior in response to taxes, which of the following is not true?

• A)Excess burden is created.
• B)Inefficiency occurs.
• C)Tax shifting might occur.
• D)The excise tax rate can increase.

---

Definitions:

F-ratio Equation

A statistical formula used in ANOVA to compare variance among groups, calculated as the variance between the group means divided by the variance within the groups.

Household Income

The combined gross income of all members of a household who are 15 years old and older, whether related or not.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists between certain datasets or populations being compared.

High School GPA

An average score representing a high school student's academic performance, usually on a 4.0 scale.