When a Tax on a Good Is Enacted

question 130

Multiple Choice

When a tax on a good is enacted:

• A)buyers always bear the full burden of the tax
• B)sellers always bear the full burden of the tax
• C)buyers and sellers share the burden of the tax regardless of whom it is levied on
• D)sellers bear the full burden if the tax is levied on them, but buyers bear the full burden if the tax is levied on them

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Definitions:

Discretion

The power or right to make decisions based on one's own judgment rather than following a strict set of rules.

Functional Departmentation

The organization of a business into departments based on functions such as marketing, sales, and human resources, to enhance efficiency and specialization.

Organizational Hierarchy

Organizational hierarchy is a system in which roles and responsibilities are ranked in order from highest to lowest, determining the flow of decision-making and authority.

Cross-Functional Problems

Issues that arise from the interaction of different departments or disciplines within an organization, requiring collaborative solutions.