The actual division of the burden of a tax is called
A)tax credit.
B)tax incidence.
C)excess burden.
D)tax dispersion.

Question

Quizplus · Accepted Answer

Tax incidence refers to how the burden of a tax is distributed between buyers and sellers in the market. It often depends on the elasticity of demand and supply for the goods or services being taxed. Tax credit, excess burden, and tax dispersion are related concepts but they do not capture the same idea as tax incidence.

The Actual Division of the Burden of a Tax Is