객관식
If a tax is levied on the sellers of a product, the demand curve:
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6. Introduction to Taxes
Introducing Taxes and Tax Incidence
객관식
What is tax incidence?
A
The legal obligation to remit a tax to the government as specified by law.
B
The statutory tax rate set by the government for a specific good or income.
C
The total amount of tax revenue collected by the government from a particular tax.
D
The distribution of the economic burden of a tax between buyers and sellers (who ultimately bears the cost).
검증된 단계별 안내1
Step 1: Understand that tax incidence refers to who ultimately bears the economic burden of a tax, which may differ from who is legally responsible for paying it to the government.
Step 2: Recognize that the legal obligation to remit a tax (statutory incidence) is not the same as the economic incidence, which is the actual distribution of the tax burden between buyers and sellers.
Step 3: Note that tax incidence depends on the relative price elasticities of demand and supply; the side of the market that is less elastic (less responsive to price changes) tends to bear a greater share of the tax burden.
Step 4: Differentiate tax incidence from the statutory tax rate (the percentage set by law) and from total tax revenue (the amount collected), as these are related concepts but not the definition of tax incidence itself.
Step 5: Summarize that tax incidence is the analysis of how the economic burden of a tax is divided between consumers and producers, regardless of who is legally required to pay the tax.
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