Tax Incidence Refers to

question 75

Multiple Choice

Tax incidence refers to

• A)what product or service the tax is levied on.
• B)who bears the tax burden.
• C)what sector of the economy is most affected by the tax.
• D)the dollar value of the tax revenues.

---

Definitions:

Marginal Cost

The outlay involved in producing an extra unit of a product or service.

Marginal Benefit

The increased pleasure or benefit received from consuming an additional unit of a product or service.

Stadium

A large, often outdoor structure for sports, concerts, or other events, featuring tiers of seats for spectators.

Pork-Barrel Legislation

Government spending for localized projects secured primarily to bring money to a representative's district, often criticized as wasteful and politically motivated.