Incentives to Work and Save Are Reduced When

question 3

Multiple Choice

Incentives to work and save are reduced when:

• A)Pigovian taxes are implemented
• B)consumption taxes replace income taxes
• C)income taxes are higher
• D)all of the above are true

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Definitions:

Freud

Freud, specifically Sigmund Freud, was an Austrian neurologist who founded psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Rational

Based on reason or logic; capable of cogent reasoning.

Free Will

The concept that humans have the ability to make choices that are not predetermined by prior causes or divine intervention.

Personality Psychologists

Scientists who study the patterns of thoughts, feelings, and behaviors that make a person unique, focusing on understanding individual differences.