The incidence of a tax refers to
A)who actually collects the tax.
B)how frequently the tax is collected.
C)who bears the economic burden of the tax.
D)how the tax affects prices or wages.

Question

Quizplus · Accepted Answer

The incidence of a tax refers to who ultimately bears the economic burden of the tax. Although A may be related to the collection process and B may be related to timing, they do not fully capture the concept of incidence. D may be a factor in determining incidence, but it is not the precise definition.

The Incidence of a Tax Refers to