When a Tax Is Imposed on a Good, the Actual

question 152

Multiple Choice

When a tax is imposed on a good, the actual incidence of the tax generally

• A) falls entirely on the buyer.
• B) falls entirely on the seller.
• C) is shared between the buyer and seller.
• D) is the same as the statutory incidence.

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Definitions:

Breach Of Contract

Not meeting any condition of a contract, be it in written or oral form, without an authentic legal reason.

Creditor Beneficiary

A third party who benefits from a contract in which the promisor agrees to pay the promisee’s debt.

Donee

The recipient of a gift or donation, who is typically not required to provide anything in return to the donor.

Incidental

Occurring as a minor accompaniment to something else or happening as a subordinate or secondary aspect.