The multiplechoice party 1. Which word or phrase is used by economists use to describe how a tax burden is divided between buyers and sellers? a. Fairness b. Efficiency c. Tax subsidy d. Tax incidence answer (I 2. Sometimes governments pay people to make certain choices. What are these payments called? a. Taxes b. Subsidies c. Transfer payments d. Welfare payments answer b 3. After we choose to tax a product, the price consumers pay a. rises, and the price received by sellers rises. b. rises, and the price received by sellers falls. c. falls, and the price received by sellers rises. d. falls, and the price received by sellers falls. answer b 4. When we choose to tax a good, one effect that always occurs is that the a. supply curve for the good always shifts. b. demand curve for the good always shifts. c. amount of the good that buyers are willing to buy at each price always remains unchanged. d. equilibrium quantity of the good always decreases. answer d