The incidence of a tax refers to
A) the division of the burden of a tax between buyers and sellers.
B) the deadweight loss that a tax generates.
C) the inefficiency of a tax.
D) the revenue collected by government because of a tax.
E) the division of the burden of a tax between the public and the government.

Question

Quizplus · Accepted Answer

The incidence of a tax refers to how the burden of the tax is divided between buyers and sellers, and how much each party is affected by the tax.

The Incidence of a Tax Refers to