To Encourage Saving for Retirement, Many Governments Allow People to Avoid

question 16

Short Answer

To encourage saving for retirement, many governments allow people to avoid income tax on their contributions to pre-tax retirement plans. Consider the decisions (a) to set up a pre-tax retirement plan, and (b) on the amount to put aside for retirement. Classify as decisions of participation or extent.

---

Definitions:

Liberal Dutch

Pertains to a period or mentality in the Netherlands characterized by openness, tolerance, and progressive policies, especially during times of significant cultural and economic growth.

Great Britain

An island in the North Atlantic off the northwest coast of continental Europe, comprising of the countries of England, Scotland, and Wales, and forming the largest part of the United Kingdom.

British Islands

A term that collectively refers to the islands that make up the United Kingdom along with certain other islands, including the Isle of Man and the Channel Islands.

Tidewater Areas

Regions near the coast affected by the tide, often characterized by wetlands and estuaries, historically significant in early American settlement and agriculture.