Question 1
A(n) ________ is most easily shifted.
◦ income tax
◦ tax on gasoline
◦ property tax
◦ tax on pineapples
Question 2
As a result of an increase in the Medicare tax that employers must pay on their employeesʹ wages, employers reduce the starting wage for new employees. This is an example of
◦ tax shifting.
◦ tax incidence.
◦ a regressive tax.
◦ tax avoidance.