Economics · Public Finance - Incidence of Taxation
The absolute or physical theory of tax shifting, associated with Classical economists, posits that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Taxes cannot be shifted and remain on the person upon whom they are originally assessed✓
- 2Only direct taxes can be shifted to capital owners
- 3Tax burdens distribute equally across all income groups
- 4All indirect taxes are completely shifted to end consumers
Correct answer
Taxes cannot be shifted and remain on the person upon whom they are originally assessed
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