In Behavioral Economics,the Term Salience Refers to

question 16

Multiple Choice

In behavioral economics,the term salience refers to

• A) relevance to the problem being investigated.
• B) people only consider information when it is conveyed in a subtle manner.
• C) how an experiment is designed.
• D) people consider information when it is presented in an "eye grabbing" manner.

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Definitions:

Regressive Tax

At the individual level, a tax whose average tax rate decreases as the taxpayer’s income increases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) falls as GDP rises.

Income Groups

Categories of individuals or households segmented by income levels, often used for statistical analysis and policy design.

Proportional Tax

At the individual level, a tax whose average tax rate remains constant as the taxpayer’s income increases or decreases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) remains constant as GDP rises or falls.

Benefits-received Principle

The concept that the amount of taxes an individual pays should be directly proportional to the level of benefits or services they receive from the government.