The statutory incidence of a tax refers to who is responsible to turning in taxe
ID: 2507125 • Letter: T
Question
The statutory incidence of a tax refers to who is responsible to turning in taxes to the government while the economic incidence of a tax refers to who bears the burden of a tax.
The economic incidence of a tax or a subsidy is independent of its statutory incidence.
Taxes lead to the following:
increased cost of producing goods and services, increased price of goods and services to consumers, decreased consumption and production of goods and services, and decreased employment in producing those goods and services.
decreased cost of producing goods and services, increased price of goods and services to consumers, decreased consumption and production of goods and services, and decreased employment in producing those goods and services.
increased cost of producing goods and services, decreased price of goods and services to consumers, decreased consumption and production of goods and services, and decreased employment in producing those goods and services.
decreased cost of producing goods and services, decreased price of goods and services to consumers, decreased consumption and production of goods and services, and decreased employment in producing those goods and services.
A gasoline tax is a proportional tax with respect to income.
In a market, quantity produced and consumed is determined by how much consumers are willing and able to pay for the goods and services, and how much producers ar willing and able to supply of the goods and services. The market is thus an allocation system that meets:
the ability-to-pay principle of fairness.
the benefits-received principle of fairness.
both the ability-to-pay and the benefits-received principles of fairness.
neither the ability-to-pay nor the benefits-received principle of fairness.
An increase in subsidies to higher education leads to the following:
further increase in demand for a college education and pressure up on the price of a college education.
decrease in demand for a college education and pressure up on the price of a college education.
further increase in demand for a college education and pressure down on the price of a college education.
decrease in demand for a college education and pressure down on the price of a college education.
an ability-to-pay tax. a benefits-received tax. a vertical equity tax. a user fee.Explanation / Answer
1)True
2)False
3)b
4)a
5)False
6)d
7)c
8)c
9)a
10)a
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