An analysis of the incidence of a unit tax on suppliers versus a unit tax on demanders shows us that the _____ of a tax may be different from the _____ of a tax.
A)actual burden;distribution
B)payment;distribution
C)amount;incidence
D)actual burden;legal assignment

Question

Quizplus · Accepted Answer

The actual burden of a tax refers to who ultimately bears the cost of the tax, which can be different from the legal assignment of the tax, indicating who is initially responsible for paying the tax to the government.

An Analysis of the Incidence of a Unit Tax on Suppliers