Economic Growth Is Important Because Expansion in the Output of Goods

question 3

Multiple Choice

Economic growth is important because expansion in the output of goods and services

• A) necessarily creates more jobs (more work for people).
• B) makes it possible for individuals to consume more and achieve higher living standards.
• C) leads to an increase in the general level of prices.
• D) generates additional tax revenues for the government.

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Definitions:

Net Taxes

The difference between the total taxes paid to government entities and any transfers or subsidies received, representing the actual tax burden.

Transfer Payments

Payments made by the government to individuals without any expectation of goods or services in return.

Shifting

The process of transferring a burden, such as tax from one entity to another, or changing the position of something.

Excise Taxes

Taxes imposed on specific goods, services, or transactions, often aimed at discouraging consumption of certain items or raising revenue.