Which of the Following Is Not One of the Side

question 99

Multiple Choice

Which of the following is not one of the side effects economists have found in programs to redistribute income?

• A) The incentive effects of a tax may result in a switch from labor to leisure.
• B) The effects of taxes may include attempts to avoid or evade taxes, leading to a decrease in measured income.
• C) The incentive effects of distributing money may cause people to make themselves look needier than they really are.
• D) The incentive effects of distributing money may cause people to avoid government assistance programs.

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Definitions:

City Council

An elected or appointed body that governs a city, town, municipality, or local government area, making decisions on local laws, policies, and budgets.

Republicans

A member or supporter of the Republican Party, one of the two major political parties in the United States.

Democrats

A member or supporter of the Democratic Party, one of the two major contemporary political parties in the United States.

Independent

A term in statistics that implies no relationship between two variables, such that the occurrence of one does not affect the probability of occurrence of the other.