Which of These Is an Example of a Tax Expenditure

question 38

Multiple Choice

Which of these is an example of a tax expenditure?

• A) salaries for federal judges
• B) funding for the Human Genome Project
• C) food stamps
• D) the home mortgage interest deduction

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Definitions:

Economic Efficiency

A situation where resources are utilized in the most effective way possible to meet the needs and wants of individuals and society.

Type of Unemployment

Categorizes joblessness based on reasons such as cyclical (due to economic downturns), frictional (short-term transitions), and structural (mismatch of skills).

Frictional Unemployment

Short-term unemployment that arises from the process of matching workers with job vacancies, reflecting job transitions and workers entering the labor force.

Official Monthly Unemployment Figures

Official monthly unemployment figures represent the percentage of the labor force that is jobless and actively seeking employment, published by government agencies.