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The incidence of Tax refers to
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- Who pays the Tax ?
- Who bears the burden of Tax ?
- How Taxes can be shifted ?
- Who transfers the Tax burden ?
- Who pays the Tax ?
Correct Option: B
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.
