Which of the Following Statements Is TRUE

question 25

Multiple Choice

Which of the following statements is TRUE?
I. Buyers bear the majority of the tax burden if the tax is originally imposed on buyers.
II. Buyers bear the majority of the tax burden if the tax is originally imposed on sellers.
III. Buyers and sellers will always bear equal amounts of the tax burden.
IV. Buyers and sellers will jointly bear the tax.

• A) I only
• B) II only
• C) III only
• D) IV only

---

Definitions:

Characteristic Thoughts

The habitual patterns or types of thinking that are typical of an individual's cognitive processes.

Habit

A repetitive behavior that an individual performs regularly, often without much conscious thought.

Pleasure Principle

In psychoanalytic theory, it is the driving force of the id that seeks immediate gratification of all desires, wants, and needs.

Guilt/Pride Principle

Refers to the internal motivators of guilt and pride that can encourage conformity to social norms and personal standards.