Which of the Following Generalizations Is Derived from the Economist's

question 104

Multiple Choice

Which of the following generalizations is derived from the economist's framework?

• A) Politicians always take too long to enact regulations because they must wait for economic advisors to perform a cost/benefit analysis.
• B) Policies that relieve immediate suffering often have the best long-run consequences.
• C) Sound policies often are prevented by individuals' self-interest-seeking activities.
• D) Government regulations have the same impact whether they are designed on the basis of cost/benefit analysis or were developed as a reaction to real-world events.

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Definitions:

Medicare Tax

A federal tax that funds the Medicare program, which is withheld from an employee's paycheck and also matched by the employer.

FICA Tax

A federal tax in the United States that funds Social Security and Medicare, contributed by both employees and employers.

Tax Withheld

The portion of an employee's income that an employer sends directly to the government as a payment of income taxes.

Federal Income Tax

The tax levied by the Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.