How Is Tax Burden Related to the Elasticity of the Market

question 72

Multiple Choice

How is tax burden related to the elasticity of the market

• A)A tax burden falls most heavily on the side of the market that is elastic.
• B)A tax burden falls most heavily on the side of the market that is inelastic.
• C)A tax burden falls most heavily on the side of the market that is closer to unit elastic.
• D)A tax burden is not influenced by the relative elasticities of supply and demand.

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Definitions:

Social Clause

A provision in trade agreements aimed at ensuring that trade does not lead to the detriment of labor or environmental standards.

WTO

World Trade Organization, an international body that regulates international trade between nations, aiming to ensure that trade flows smoothly and freely.

ILO

The International Labour Organization (ILO) is a United Nations agency that sets international labor standards and promotes rights at work, encouraging decent employment opportunities and enhancing social protection.

National Labor Relations Board

A federal agency in the United States tasked with enforcing US labor law in relation to collective bargaining and unfair labor practices.