Figure 18-1 -The Economic Burden of an Excise Tax

question 151

Multiple Choice

Figure 18-1
-The economic burden of an excise tax

• A)can usually be partially shifted from buyers onto sellers.
• B)equals the revenue from the tax.
• C)is less than the burden of an income tax that would raise the same revenue.
• D)is shared equally by buyers and sellers.

---

Definitions:

Special Price

A temporarily reduced price offered on goods or services, often used as a promotional or marketing strategy.

Net Income

The net income of a business following the subtraction of all costs and taxes from its earnings.

Absorption Costing

A costing method that integrates all expenses related to the manufacturing process, including direct materials, direct labor, and overhead costs, both variable and fixed, into the final product cost.

Required Rate

Often refers to the minimum expected rate of return on an investment, taking into account the risk level.