A Decrease in Net Taxes

question 131

Multiple Choice

A decrease in net taxes:

• A)increases GDP as much as an equal decrease in government purchases.
• B)increases GDP less than an equal increase in government purchases.
• C)decreases GDP more than an equal decrease in government purchases.
• D)changes GDP in an unpredictable manner.
• E)has no effect on GDP.

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Definitions:

Inherent Rewards

The satisfaction and motivation that come from the work itself rather than from external rewards like money or recognition.

Seniority-Based Pay

Guaranteed wages and salary increases based on the amount of time the employee has spent with the organization.

Performance-Based Pay

A financial incentive awarded to employees for meeting certain goals or objectives.

Skill-Based Pay

A system of pay that rewards employees for the acquisition and the development of new skills that lead to enhanced work performance.