In order to determine tax incidence, one must
a. consider issues of equity.
b. also determine the legal liability of the tax.
c. evaluate where the tax burden eventually falls.
d. use the "flypaper theory" of taxation.
c
You might also like to view...
The presence of union wages leads to
A) a fall in the real wage rate as more people are hired. B) less job search as more workers are hired. C) job rationing because the real wage exceeds the equilibrium real wage. D) a fall in the real wage rate as fewer people are hired. E) lower unemployment because workers do not want to lose the high union wage they are being paid.
The slope of the per-worker production function diminishes as the amount of capital per-worker increases. This is a reflection of the law of _____
a. increasing marginal returns b. diminishing marginal returns c. constant marginal returns d. first diminishing then increasing marginal returns e. demand