1. The burden of a tax falls on? _______.
A. the buyer and the seller if the tax is imposed on buyers
B. the buyer if the supply of the good is perfectly elastic
C. the seller and the buyer if the tax is imposed on sellers
D. the buyer if the demand for the good is perfectly elastic
2. Choose the correct statement.
A. Capital income in the form of interest on bonds and bank deposits and dividends on stocks is taxed twice.
B. Capital is internationally? mobile, so the supply of capital is highly inelastic.
C. Capital income tax is paid entirely by the lender.
D. Capital can be substituted for labor in many? situations, so the demand for capital is elastic.