A Tax Deduction Allowed for an Activity for Which Positive

question 27

True/False

A tax deduction allowed for an activity for which positive externalities are not likely to exist (such as home ownership) is likely to cause the marginal social cost of the activity to exceed its marginal social benefit.

---

Definitions:

Stocks and Bonds

Equity and debt securities respectively, representing ownership in a corporation and a loan to be repaid by an entity, often with interest.

5th Wheel

A pivoting plate attached to a vehicle's chassis (like those on semi-trucks) that enables the attachment and swivel motion of a trailer or similar component.

Locking Mechanism

A device or system designed to prevent movement or separation by securing components in place, commonly used in various types of machinery and equipment.

Drawbar Eye

The coupling eye that engages to either a pintle hook or the shank below a heavy-duty ball hitch assembly.