18. All of the following represent examples of the incidence of tax, EXCEPT for *

Answer: See explanation

Explanation:

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Incidence of tax is the impact that a tax simply has on how the economic welfare are being distributed. It refers to how tax is being distributed between the producers and the buyers of a particular good. It should be noted that the tax burden is shared by the sellers depending on the elasticity of the said product.

For example, in a situation whereby a $2 tax is imposed on each good a producer produces, if the producer then pass the tax to the final consumers when he raised the price of the goods by $2, we can simply say that such good has a price inelastic as the entire burden falls on the consumer.

Also, assuming the producer can't increase prices because such good is price elastic, that is, there will be a greater change in the quantity of the goods demanded, the burden will be felt by the producer alone. Here, we can say that the tax incidence falls on the producer.

Geologists know that wherever plate movement stores energy in the rock along faults,
a.
earthquakes are not likely.
b.
earthquakes are likely.
c.
an earthquake is occurring.
d.
an earthquake could never occur.


Please select the best answer from the choices provided

A
B
C
D