What Prediction About Growth Would Most Economists Make If a Government

question 35

Multiple Choice

What prediction about growth would most economists make if a government enacts a tax on all transactions in financial markets?

• A)The tax would increase growth because it would encourage people to leave the unproductive financial sector and move to a useful sector of the economy.
• B)The tax would probably have no effect on growth because it would not affect capital or technology.
• C)The tax would reduce growth because it would make it harder for those with productive opportunities to obtain funds from savers.
• D)The effects would depend on whether it was borne primarily by the rich or by the poor.

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Definitions:

Wattled Jacanas

Tropical wetland birds known for their distinctive long toes and striking facial wattles, typically found across Central and South America.

Sexual Selection

A mechanism of evolution where individuals with certain inherited characteristics are more likely than other individuals to obtain mates.

Strong Sexual Selection

A form of natural selection where certain traits increase an individual's chances of mating and reproducing more than others.

Weak Sexual Selection

A scenario in which the selection of mates based on certain traits is less pronounced, leading to minimal differences in reproductive success among individuals.