________ States That If Previously Existing Distortions Exist, a Distortionary

question 225

Multiple Choice

________ states that if previously existing distortions exist, a distortionary tax may actually improve efficiency.

• A) The principle of second best
• B) The rule of reverse distortion
• C) The principle of neutrality
• D) The benefits-received principle

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Definitions:

Need For Power

The desire to control, influence, or be responsible for other people.

Acquired Needs Theory

A motivational theory that suggests human needs for achievement, affiliation, and power are developed over time based on life experiences.

Need For Power

An individual's desire for influence or control over others, motivating them to seek positions of authority.

Need For Affiliation

The desire to establish and maintain good relations with people.