Which of the Following Statements Is Not Correct

question 376

Multiple Choice

Which of the following statements is not correct?

• A)Reducing taxes on interest income might encourage people to save more.
• B)Reducing taxes on interest income might reduce saving.
• C)A price increase will create income and substitution effects that will both always work to reduce consumption of the good.
• D)Utility is maximized when the marginal rate of substitution between any two goods equals the relative prices of the two goods.

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Definitions:

Urbanization

The process by which towns and cities are formed and become larger as more people begin living and working in central areas, leading to various social, economic, and environmental changes.

Know-Nothing Party

Nativist, anti-Catholic third party organized in 1854 in reaction to large-scale German and Irish immigration; the party’s only presidential candidate was Millard Fillmore in 1856.

Fugitive Slave Act

Legislation passed in the United States that allowed for the capture and return of runaway enslaved people within the territory of the United States.