The Government Decides to Give Tax-Exempt Status to a New

question 115

Multiple Choice

The government decides to give tax-exempt status to a new organization whose mission is to award college scholarships to members of the armed forces. In doing so, the government is acting in its role to promote economic growth by

• A) ensuring a stable legal system.
• B) enhancing physical and human capital.
• C) ensuring a stable and secure financial system.
• D) promoting free and competitive markets.

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Definitions:

Pleasure Principle

A psychoanalytic concept suggesting that individuals seek pleasure and avoid pain to satisfy their biological and psychological needs.

Freud's Personality

A theory by Sigmund Freud that human personality is complex and has three distinct parts: the id, ego, and superego.

Id

The unconscious system of the personality, which contains the life and death instincts and operates on the pleasure principle; source of the libido.

Iceberg Metaphor

A psychological model used to describe the conscious mind as the tip of the iceberg visible above water, with the unconscious mind as the larger mass below water.