Which of the Following Generalizations About the Burden of an Excise

question 14

Multiple Choice

Which of the following generalizations about the burden of an excise tax is correct?

• A) The more inelastic the supply of a product, the larger the portion of an excise tax will be paid by buyers.
• B) The more inelastic the demand for a product, the larger the portion of an excise tax will be paid by buyers.
• C) The more elastic the supply of a product, the smaller the portion of an excise tax will be paid by buyers.
• D) The burden of an excise tax on a product is independent of the elasticity of the supply and demand for the product on which the tax is levied.

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Definitions:

Testimony

Oral or written statements given by a witness under oath, intended to provide evidence in a legal proceeding.

Directed Verdict

A ruling by a judge in a jury trial, taking the decision out of the jury’s hands because one party has not provided sufficient evidence to prove their case.

Motion

A formal request made to a court for an order or ruling on a particular point before, during, or after a trial.

Evidence Support

The substantiation of a claim or argument in a court of law through the presentation of evidence, such as documents or witness testimony.