Tax Incidence Refers to

question 43

Multiple Choice

Tax incidence refers to

• A) whether the sales tax is collected by sellers or buyers.
• B) who bears the ultimate burden of the tax.
• C) the principle of taxation used, either benefit or ability-to-pay.
• D) the classification of a particular act as tax evasion or tax avoidance.
• E) the separation of taxation from expenditure as in revenue sharing.

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Definitions:

Factorial Design

An experimental strategy that involves manipulating more than one independent variable to determine their separate and combined effects on a dependent variable.

Independent Variables

Variables in an experiment that are manipulated or changed to observe their effects on dependent variables.

Main Effects

A statistical term referring to the individual impact of each independent variable on the dependent variable in an experiment, distinguishing from interactions between variables.

Factorial Design

Factorial design is a statistical test used in experiments where there are two or more independent variables and it evaluates the effect of each, as well as the interaction between them, on the dependent variable.