Which of the Following Statements Is Correct Regarding the Imposition

question 254

Multiple Choice

Which of the following statements is correct regarding the imposition of a tax on gasoline?

• A)​The incidence of the tax always falls on the buyer.
• B)​The incidence of the tax depends upon the price elasticities of demand and supply.
• C)​The incidence of the tax always falls on the sellers.
• D)​The oil company will ultimately pay.

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Definitions:

Utilitarians

Advocates of utilitarianism, the ethical theory that posits the greatest happiness for the greatest number as the foundation of morals and legislation.

Hedonism

The ethical theory that pleasure (in the sense of the satisfaction of desires) is the highest good and proper aim of human life.

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from an experience or activity.

Happy Life

A state of well-being characterized by emotions ranging from contentment to intense joy, often seen as the ultimate goal in various philosophical and ethical theories.