A. falls more heavily on sellers
B. falls entirely on sellers
C. falls more heavily on buyers.
D. is evenly distributed between buyers and sellers.
Related Mcqs:
- For which of the following products would the burden of a tax likely fall more heavily on the sellers ?
A. Clothing
B. food
C. housing
D. entertainment - Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?
A. B + C + E + F
B. B
C. B + C
D. A - Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?
A. C + F
B. A
C. B
D. C - The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?
A. indirect taxes
B. direct taxes
C. inelastic
D. value-added tax - Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?
A. Rs 50000
B. 20%
C. 25%
D. Rs 10000 - The burden of a tax falls more heavily on the sellers in a market when ?
A. both supply and demand are elastic
B. both supply and demand are inelastic
C. demand is inelastic and supply in elastic
D. demand is elastic, and supply is inelastic - The burden of a tax falls more heavily on the buyers in a market when ?
A. both supply and demand are inelastic
B. demand is elastic, and supply are inelastic
C. both supply and demand are elastic
D. demand is inelastic, and supply is elastic - Which of the following statements about the burden of a tax is correct ?
A. The tax burden generated from a tax placed on a good consumer perceive to be a necessity will fall most heavily on the sellers of the good
B. The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected
C. The distribution of the burden of a tax is determined by the relative elasticities of determined by legislation.
D. The tax burden falls most heavily on the side of the market (buyers and sellers) that is most willing to leave the market when price movements are unfavorable to them. - Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4 ?
A. The buyers pay a larger portion of the tax because demand is more inelastic than supply
B. The sellers pay a larger portion of the tax because supply is more elastic than demand
C. The buyers pay a larger portion of the tax because demand is more elastic then supply
D. The sellers pay a larger portion of the tax because supply is more inelastic than demand - A tax whose burden is the same proportion of income for all households is ?
A. an equal tax
B. a proportional tax
C. a progressive tax
D. a regressive tax
