Dr Chen Finds in Her Study of People's Charitable Habits

question 44

Multiple Choice

Dr. Chen finds in her study of people's charitable habits that individuals overestimate the amount of money they give to their churches and private schools. Dr. Chen's results may reflect

• A)over-representation bias.
• B)social desirability bias.
• C)poor random sampling.
• D)large sample bias.
• E)volunteer bias.

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Definitions:

Benefits-Received Principle

The benefits-received principle is a taxation theory suggesting that individuals should be taxed based on the extent to which they benefit from public goods and services.

Excise Tax

A type of indirect tax imposed on specific goods, such as tobacco and alcohol, often with the aim of reducing their consumption or generating revenue.

Public Golf Courses

Golf facilities that are owned by a government entity and are open to the public, typically requiring payment of a fee for use.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, leading to a higher burden on lower-income individuals.