The 'flypaper theory' of taxation means that if a firm has a tax imposed then:
A) the firm is able to shift the burden of the tax to others
B) the firm belongs to the flypaper industry
C) pesticides have a negative externality
D) the firm cannot share the burden of the tax

Question

Quizplus · Accepted Answer

The 'flypaper theory' of taxation suggests that the burden of a tax sticks where it first lands, meaning the firm cannot shift the tax burden to others and must bear it themselves.

The 'Flypaper Theory' of Taxation Means That If a Firm