A Tax Rebate

question 89

Multiple Choice

A tax rebate

• A)Has the same impact as a decrease in marginal tax rates.
• B)Increases the incentive to work and invest.
• C)Does not affect aggregate supply.
• D)Does not affect aggregate demand.

---

Definitions:

Specific Tariffs

Taxes imposed on imported goods at a specific rate per unit, such as per ton or per item, instead of a percentage of value.

Tariff

A tax imposed on imported goods to protect domestic industries or to generate revenue.

Imports

Goods and services bought by residents of a country from other countries.

Opportunity Costs

The loss incurred by not opting for the alternative that stands as the next best choice during decision-making.