Which of the Following Statements About Negative Incentives Is the Most

question 44

Multiple Choice

Which of the following statements about negative incentives is the most accurate?

• A) They increase benefits or reduce costs.
• B) They increase benefits and increase costs
• C) They decrease benefits or increase costs.
• D) They include both cash subsidies and taxes.

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Definitions:

Transaction

A financial operation between two parties involving an exchange or transfer of goods, services, or funds.

Social Security Income

Social Security Income (SSI) is a government program that provides financial assistance to individuals who are elderly, blind, or have disabilities, based on income needs.

Taxable Amount

The taxable amount is the portion of income or a financial transaction that is subject to taxes according to the laws and regulations of the tax jurisdiction.

Tax Return

A form or forms filed with a taxing authority that report income, expenses, and other pertinent tax information, used to calculate tax liability.