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Scenario 20-1 Suppose That a Society Is Made Up of Five Families

question 175

Multiple Choice

Scenario 20-1
Suppose that a society is made up of five families whose incomes are as follows:
$120,000; $90,000; $30,000; $30,000; and $18,000.
The federal government is considering two potential income tax plans:
Plan A is a negative income tax plan where the taxes owed equal 1/3 of income minus $20,000.
Plan B is a two-tiered plan where families earning less than $35,000 pay no income tax and families earning more than $35,000 pay 10% of their income in taxes. The income tax revenue collected from those families earning over $35,000 is then redistributed equally to those families earning less than $35,000.
-Refer to Scenario 20-1.Assuming that utility is directly proportional to the cash value of after-tax income,which government policy would an advocate of utilitarianism prefer?

Understand the elaboration likelihood model, including the central and peripheral routes to persuasion.

Identify factors that influence the effectiveness of persuasive messages, including source credibility and argument strength.

Describe different effects related to persuasion such as the sleeper effect, recency effect, and primacy effect.

Explain the role of physical attractiveness of the communicator in the persuasion process.

Definitions:

Statistical Technique

A method used in the analysis of numerical data and the interpretation of statistical results.

Factor Analysis

A statistical strategy for identifying key variables, or factors, that elucidate the correlation patterns observed within a set of variables.

Statistical Technique

A method used in the collection, analysis, interpretation, or presentation of data.

Continuously Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.