Which of the Following Taxes Is Most Likely to Be

question 175

Multiple Choice

Which of the following taxes is most likely to be shifted?

• A)a property tax on an owner-occupied residence 
• B)a progressive income tax 
• C)a flat-rate state income tax 
• D)a general sales tax

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Definitions:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Expected Utility Maximizer

An economic theory that assumes individuals choose among risky alternatives in such a way as to maximize their expected utility.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Contingent Commodity Bundles

A theoretical concept in economics, referring to a collection of goods or services whose provision is dependent on specific conditions or states of the world.