Which of the Following Is Not Correct

question 559

Multiple Choice

Which of the following is not correct?

• A) Taxes levied on sellers and taxes levied on buyers are not equivalent.
• B) A tax places a wedge between the price that buyers pay and the price that sellers receive.
• C) The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax levied on buyers or sellers.
• D) In the new after-tax equilibrium, buyers and sellers share the burden of the tax.

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Definitions:

Physical Capital

Assets that are tangible, such as buildings, machinery, and equipment, used to produce goods and services.

Future Income

Anticipated earnings or revenue one expects to receive in a forthcoming period, driven by employment, investments, or other sources.

Human Capital

The set of skills, acquired knowledge, and lived experiences present in an individual or a populace, evaluated in light of their value significance or cost to a corporation or a sovereign state.

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, morals, beliefs, and habits through various methods such as teaching, training, and research.