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Business, 11.02.2020 17:24 drinkinwater

Identify whether the following statements about the economics of taxes are true or false.

a. The incidence of a tax is determined by which group (buyers or sellers) must write the check to the government.
i. True
ii. False
b. When the price elasticity of demand is low and the price elasticity of supply is high, the burden of a tax falls mainly on producers.
i. True
ii. False
c. The effect of an excise (or commodity) tax on the equilibrium price is the same regardless of who the tax is levied upon.
i. True
ii. False
d. When the price elasticity of demand is high and the price elasticity of supply is low, the burden of a tax falls mainly on consumers.
i. True
ii. False
e. An excise tax can distort incentives and create missed opportunities for mutually beneficial transactions.
i. True
ii. False

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Identify whether the following statements about the economics of taxes are true or false.

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