The Burden of a Tax Is

question 104

Multiple Choice

The burden of a tax is

• A)the amount of revenue that the government raises from the tax.
• B)what it would cost in alternative tax revenue to provide the same level of service.
• C)greater as the total revenue from the tax decreases.
• D)the amount the taxpayer would have to be given to be just as well off in the presence of the tax as in its absence.

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Definitions:

Self-Serving Bias

The common tendency to attribute one's successes to personal characteristics and failures to external factors.

Very Smart

A term often used to describe individuals with high intellectual capabilities or talented in a particular area.

Fundamental Attribution Error

The tendency to attribute others' behaviors to their character or personality while underestimating the influence of external factors.

Illusory Correlation

The belief in a connection between two factors when in reality, there is no such link.