The Burden of a Tax on a Good Is Said

question 215

Multiple Choice

The burden of a tax on a good is said to fall completely on the consumers if the:

• A)price paid by consumers for the good declines by the amount of the tax.
• B)price paid by consumers for the good increases by the amount of the tax.
• C)price paid by consumers does not change.
• D)wages received by workers who produce the good increase by the amount of the tax.

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Definitions:

Theoretical Characteristic

An abstract property or attribute foundational to theoretical models or concepts, often used in academic and scientific research.

Research and Development Costs

Expenses related to the investigation and creation of new knowledge, products, processes, or services.

Purchased Goodwill

The intangible asset recorded when a company acquires another business for more than the fair value of its net identifiable assets, representing non-physical assets like reputation and brand value.

Conceptual Viewpoint

An approach or perspective based on abstract ideas or theories rather than on practical applications.