By Allowing an Income-Tax Deduction for Charitable Contributions, the Government

question 366

Multiple Choice

By allowing an income-tax deduction for charitable contributions, the government

• A)encourages a private solution to a particular positive-externality problem.
• B)discourages a private solution to a particular positive-externality problem.
• C)encourages a private solution to a particular negative-externality problem.
• D)discourages a private solution to a particular negative-externality problem.

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Definitions:

Periodic Inventory Method

An accounting method where inventory is physically counted at the end of each period to determine the cost of goods sold and ending inventory.

Petty Cash Fund

Fund (source) that allows payment of small amounts without the writing of checks.

Approved Voucher

A document or record that authorizes a payment and confirms that goods or services have been received and are satisfactory, ready for payment processing.

Unpaid Balance

The remaining amount of a debt or loan that has not yet been paid off by the borrower.