In the Long Run,the Greater Burden of a Specific Tax

question 13

Multiple Choice

In the long run,the greater burden of a specific tax will usually be absorbed by

• A)consumers.
• B)the party consumers or producers with the more elastic demand/supply curve.
• C)the party with the least elastic demand/supply curve.
• D)shareholders and employees of the firm in the form of reduced dividends and wages.

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Definitions:

Retirement Savings

Money that has been set aside or invested with the intention of providing income or financial support during retirement.

Contributions Credit

A tax credit that may be received for certain contributions made to retirement accounts or charitable organizations, aimed at reducing the taxpayer's overall tax liability.

IRA

Individual Retirement Account, a saving tool for individuals to allocate funds for retirement with tax advantages.

American Opportunity Tax Credit

A rebate on legitimate educational expenditures for a qualifying student throughout the first four years of their university or college education.