When a Tax on a Good Is Enacted

question 71

Multiple Choice

When a tax on a good is enacted,

• A)buyers and sellers share the burden of the tax regardless of whether the tax is levied on buyers or on sellers.
• B)buyers always bear the full burden of the tax.
• C)sellers always bear the full burden of the tax.
• D)sellers bear the full burden of the tax if the tax is levied on them;buyers bear the full burden of the tax if the tax is levied on them.

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Definitions:

Administration

In a legal context, it refers to the management and settlement of an estate of a deceased person by an appointed administrator.

Bankruptcy Code

The collection of federal laws and regulations that govern the process of bankruptcy in the United States, as codified under Title 11 of the U.S. Code.

United States Code

The codification by subject matter of the general and permanent laws of the United States, organized into a comprehensive code.

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Legal documents or designations that signify ownership of property or assets.