Numerical answer
The four sentences below, numbered 1–4, can be arranged into a coherent paragraph. Decide on the correct order and key in the sequence of numbers as your answer (e.g., 4123).
1. Yet the tax's defenders argue that critics overstate the burden on consumers, since firms competing in price-sensitive markets tend to absorb a significant share of the tax themselves rather than pass it on in full.
2. When a government imposes a tax on a good, a familiar question follows: who actually ends up paying for it, the seller or the buyer?
3. Economists call this the incidence of a tax, and it rarely lines up neatly with who is legally required to remit the payment to the treasury.
4. Critics of a proposed sugar tax, for instance, warned that manufacturers would simply raise prices and pass the entire cost onto consumers, hitting low-income households hardest.
1. Yet the tax's defenders argue that critics overstate the burden on consumers, since firms competing in price-sensitive markets tend to absorb a significant share of the tax themselves rather than pass it on in full.
2. When a government imposes a tax on a good, a familiar question follows: who actually ends up paying for it, the seller or the buyer?
3. Economists call this the incidence of a tax, and it rarely lines up neatly with who is legally required to remit the payment to the treasury.
4. Critics of a proposed sugar tax, for instance, warned that manufacturers would simply raise prices and pass the entire cost onto consumers, hitting low-income households hardest.
Show answer and solution
Answer: 2341
Sentence 2 poses the opening question. Sentence 3 introduces the technical term ('incidence') that answers it. Sentence 4 gives a concrete example (the sugar tax) of the concern that the burden falls on consumers, and sentence 1 ('Yet the tax's defenders argue...') provides the counterpoint to that example. The coherent order is 2-3-4-1.
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