In Effect,the U

question 27

Multiple Choice

In effect,the U.S.does subsidize high-tech firms by subsidizing R&D.This is done through

• A) the budget of the Department of Education.
• B) systematic protection through the levying of tariffs.
• C) systematic protection through the establishment of NTBs.
• D) relatively accelerated "depreciation" of R&D investment in the Federal tax codes.
• E) subsidies for high-tech firms.

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Definitions:

Federal

Relating to the central government of a country, as opposed to state or local governmental bodies.

State

A political entity that possesses sovereignty over a geographic area and the people within it, with a structured system of governance.

U.S. Tax System

A structured framework by which the federal, state, and local governments in the United States collect taxes from individuals and businesses based on income, sales, property, and other financial activities.

Primary Federal Tax System

The principal tax collection mechanism of the federal government, including income, payroll, and corporate taxes.