The Principle That People Will Exploit Opportunities to Do What

question 120

True/False

The principle that people will exploit opportunities to do what is best for others is the basis of all predictions by economists about individual behavior.

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Definitions:

Taxable Income

is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Federal Income Tax

A tax imposed by the federal government on personal and corporate income.

Warren Buffett

An American investor, business tycoon, philanthropist, and the chairman and CEO of Berkshire Hathaway, known for his successful investment strategies.

Average Tax Rate

The percentage of taxable income that is paid in taxes; taxes paid divided by taxable income.