Tax Incidence Refers To

question 182

Multiple Choice

Tax incidence refers to:

• A)who writes the check to the government.
• B)who really pays the tax.
• C)the deadweight loss from the tax.
• D)the total revenue that the government collects from the tax.

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Definitions:

Outputs

The products or services generated by a business or an economic system.

Inputs

The resources, such as capital, labor, and materials, used in the production process to create goods or services.

Marginal Product

The increase in output that occurs when one more unit of a certain input is added, with all other inputs remaining the same.

Profit Maximization

The process or strategy used by businesses to determine the price and output level that leads to the highest profit.