Which of the Following Is an Accurate Statement About Tax

question 23

Multiple Choice

Which of the following is an accurate statement about tax incidence?

• A) Questions about tax incidence are purely problems of normative economics, that is, questions involving, "Who should pay the tax?"
• B) The incidence of the personal income tax is not generally agreed on.
• C) The property tax is borne entirely by the landlord.
• D) The incidence of the sales tax depends on the price sensitivity of the supply and demand curves for the taxed commodity.
• E) Economists agree that most, if not all, corporate income taxes are incidental.

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Definitions:

Oligopoly Market

A market structure characterized by a small number of firms that dominate the market, leading to competitive yet interdependent market conditions.

Monopolistically Competitive Market

An economic scenario where numerous companies offer products that are alike but not exactly the same, leading to competition based on aspects other than price.

Monopolistic Market

An economic scenario where only one seller provides a distinctive product or service, facing substantial obstacles that prevent other competitors from entering the market.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are perfect substitutes.