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:

Distributive Strategy

is a negotiation approach that views the situation as a fixed pie where any gain by one party results in a loss by the other, leading to competitive bargaining tactics.

Integrative Strategy

A negotiation or planning approach that seeks to combine resources, meet mutual needs, and achieve shared goals, emphasizing cooperation over competition.

Strategic Goals

Long-term objectives that guide decision-making and tactics in pursuit of overall success.

Accommodative Negotiation

A negotiation approach where one party makes concessions to the other to reach an agreement, often at their own expense.