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The Two Basic Functions of Theories Are To

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The two basic functions of theories are to:


Definitions:

Income Effect

The effect of modifications in earnings for a person or the economy on how much of a good or service is sought after.

Income Tax

A tax levied by governments on individuals or entities based on their income or profits.

Rebated Money

Funds that are returned to a payer, often as a discount or refund, after a purchase or payment has been made.

Taxpayer Reasoning

The thought process individuals use to evaluate the benefits and costs of paying taxes relative to the services and goods provided by the government.

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