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JAMB Economics 2013 Question 32

Question 32

Public Finance

A tax on land will ultimately fall

  1. A.partly on agents and users.
  2. B.entirely on users.
  3. C.entirely on owners.
  4. D.partly on users and owners.
Show the answer and explanation

Answer: C (entirely on owners.)

Explanation

The quantity of land cannot change, so owners cannot shift the tax to users by reducing supply; they bear all of it.