Which of the Following Statements About the Burden of a Tax

question 14

Multiple Choice

Which of the following statements about the burden of a tax is correct?

• A) The tax burden generated from a tax placed on a good that consumers perceive to be a necessity will fall most heavily on the sellers of the good.
• B) The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected.
• C) The distribution of the burden of a tax is determined by the relative elasticities of supply and demand and is not determined by legislation.
• D) The tax burden falls most heavily on the side of the market (buyers or sellers) that is most willing to leave the market when price movements are unfavourable to them.

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Definitions:

Discriminative Stimulus

A stimulus in the environment that signals the availability of reinforcement or punishment, guiding behavior based on its presence or absence.

Respondent Behavior

Behavior that occurs as an automatic response to a certain stimulus, often without conscious intent.

Unconditioned Response

An automatic, innate reaction to a stimulus that occurs without prior conditioning or learning.

Negatively Reinforced

A behavior strengthened because a negative condition is removed or avoided as a consequence of the behavior.