Taxes on Labor Have the Effect of Encouraging

question 38

Multiple Choice

Taxes on labor have the effect of encouraging

• A)workers to work more hours.
• B)the elderly to postpone retirement.
• C)second earners within a family to take a job.
• D)unscrupulous people to take part in the underground economy.

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Definitions:

Sensitization

An increase in behavioral response after exposure to a stimulus.

Habituation

The diminishing response to a frequently repeated stimulus over time.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating the actions of others, also known as modeling.

Operant Conditioning

An instructional process wherein the forcefulness of a behaviour is changed by the application of incentives or deterrents.