If You Burn Your Trash in the Backyard in Spite

question 188

Multiple Choice

If you burn your trash in the backyard in spite of regulations against it, then you are

• A)acting economically irrational and creating a social cost.
• B)avoiding the private costs associated with disposing your trash some other way and creating a social cost.
• C)acting rationally and creating a positive externality.
• D)saving landfill space and creating a social benefit.

Distinguish between trading up and trading down in product repositioning.

Comprehend the impacts of product bundling on marketing strategy.

Recognize the significance of reaching new markets and users through market modification.

Understand how creating new use situations contributes to market modification.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the rate applied to each additional dollar of income.

Taxable Income

The amount of income used to determine how much tax an individual or a company owes to the government in a given tax year.

U.S. Tax Court

A federal court that provides taxpayers a venue to dispute tax assessments by the IRS without having to pay the disputed amount upfront.

U.S. Court of Appeals

A level of federal courts in the United States which review decisions of lower courts, typically called circuit courts.