Determining whether the burden of taxes falls on consumers, workers, or owners of other factors of production is:
A) tax incidence analysis.
B) government spending theory.
C) public interest theory.
D) public choice theory.

Question

Quizplus · Accepted Answer

Tax incidence analysis is the study of who bears the economic burden of taxes. It determines the impact of a tax on different groups in a market, such as consumers, workers, or owners of factors of production. Therefore, A is the correct choice. B, C, and D are not relevant to the question of tax incidence analysis.

Determining Whether the Burden of Taxes Falls on Consumers, Workers