Tax incidence is the ?
Correct answer: B. ultimate distribution of a tax's burden
- A. structure of the tax.
- B. ultimate distribution of a tax's burden
- C. behaviour of shifting the tax to another party
- D. measure of the impact the tax has on employment and output
Explanation
Tax incidence means who ultimately bears the economic burden after buyers and sellers adjust prices and quantities. This may differ from the person legally required to remit the tax.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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