Which of the Following Taxes Is Least Likely to Be

question 218

Multiple Choice

Which of the following taxes is least likely to be shifted?

• A) a state excise tax on the sellers of football tickets
• B) a personal income tax
• C) a general sales tax on retailers who sell foodstuffs and clothing
• D) a federal excise tax on the producers of whiskey

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Definitions:

Intertemporal Budget Constraint

A concept that describes the trade-offs between current and future consumption, considering the effects of present decisions on future financial standing.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specific rate of return.

Lifetime Consumption

Refers to the total amount of goods and services consumed by an individual over the entirety of their life.

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation, reflecting the true cost of borrowing.