Economists Have Shown That the Burden of a Tax Is

question 10

Multiple Choice

Economists have shown that the burden of a tax is the same whether the tax is collected from the buyer or the seller.Why, then, are gasoline and cigarette taxes imposed on sellers?

• A)Sellers are more honest than buyers.
• B)The demand for both gasoline and cigarettes is very elastic.
• C)The Equal Protection Clause of the U.S. Constitution prohibits the government from imposing taxes like these on buyers.
• D)It is more difficult for buyers to keep track of their purchases, and for the government to verify that the right of amount of tax revenue is collected.

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Definitions:

Superego

In Freudian psychoanalytic theory, this part of the personality is responsible for moral standards and ideals, often contrasting with the id.

Freud

An Austrian neurologist named Sigmund Freud established the practice of psychoanalysis, which is a technique for treating mental illnesses by facilitating dialogue between a psychoanalyst and a patient.

Defense Mechanism

Psychological strategies brought into play by individuals or the ego to cope with reality and to maintain self-image by reducing anxiety arising from unacceptable thoughts or feelings.

Repression

A psychological process in which traumatic memories are buried in the unconscious.