Q.

The incidence of Tax refers to -

A. Who pays the Tax?
B. Who bears the burden of Tax?
C. How Taxes can be shifted?
D. Who transfers the Tax burden?
Answer» B. Who bears the burden of Tax?
Explanation: In economics, tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare. Tax incidence is said to "fall' upon the group that ultimately bears the burden of, or ultimately has to pay, the tax.
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