When Policy Makers Are Deciding Where to Place the Statutory

question 85

Multiple Choice

When policy makers are deciding where to place the statutory incidence of a tax,it is helpful to remember that:

• A) it will have no effect on the economic incidence of the tax.
• B) the economic incidence will fall to the more-elastic party.
• C) it will largely determine the economic incidence of the tax.
• D) it will have a large impact on efficiency of the tax.

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Definitions:

Pharynx

The muscular tube at the back of the nasal and oral cavities that connects them to the esophagus.

Respiratory System

The network of organs and tissues, including the lungs and airways, involved in the intake of oxygen and the removal of carbon dioxide from the body.

Tongue

A muscular organ in the mouth that manipulates food for chewing and swallowing, and is also a primary organ of taste.

Dyspnea

A medical term for shortness of breath or difficulty in breathing, often indicating an underlying health issue.