Suppose a tax is imposed on cameras.The administrative burden of the tax comes from:
A)those consumers who still choose to buy cameras, but pay a higher price that reflects the tax
B)those consumers who choose not to buy the camera after the tax raises the price
C)those citizens who must include the camera tax in their tax returns
D)those consumers who are unable to avoid paying the tax on cameras

Question

Quizplus · Accepted Answer

The administrative burden of a tax refers to the costs associated with its administration, including compliance and enforcement. This includes the efforts and resources required by citizens to include specific taxes in their tax returns, making option C correct. Options A, B, and D describe economic effects on consumers rather than administrative burdens.

Suppose a Tax Is Imposed on Cameras