Tax incidence is the

A) behavior of shifting the tax to another party.
B) ultimate distribution of a tax's burden.
C) structure of the tax.
D) measure of the impact the tax has on employment and output.

Learning Objectives

• Familiarize oneself with the repercussions of tax legislation on economic behaviors, with an emphasis on tax incidence and the adjustment of tax charges.
• Evaluate the burden of tax shifting and tax incidence in various economic scenarios.