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:

Government Spending

The total amount of money that a government allocates and uses on public services and infrastructure.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the actual value of goods and services produced.

Aggregate Demand Curve

A graph representing the total demand for goods and services within an economy at various price levels, typically downward sloping, indicating an inverse relationship between the price level and the quantity of aggregate demand.

Government Purchases

Spending by the government on goods and services that are directly consumed or invested in by the government sector.