If You Want to Purchase a Good That Decision Will

question 31

Multiple Choice

If you want to purchase a good that decision will not depend on which one of the following items?

• A)The price of the good.
• B)Your tastes.
• C)The prices of substitute goods.
• D)Your income.
• E)The elasticity of supply.

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Definitions:

Incidence

In economics, the allocation or distribution of a tax's economic burden between buyers and sellers.

Tax Rate Structure

The percentage of a tax base that must be paid in taxes—25 percent of income, for example.

Tax Base

The tax base is the total amount of income, property, assets, or other wealth that is subject to taxation by a taxing authority.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, indicating the impact of each additional dollar of income on taxes owed.