Government Policies, Like Minimum Wage, Will Tend to Throw Off

question 62

True/False

Government policies, like minimum wage, will tend to throw off production preferences based upon comparative advantage.

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Definitions:

Average Tax Rate

The percentage of total income allocated towards taxes, determined by dividing the taxpayer's total tax payment by their overall income.

Marginal Tax Rate

The tax rate applied to the last dollar of income, representing the rate at which additional income is taxed.

Taxable Income

The portion of an individual’s or corporation's income that is subject to taxes by the government.

Average Tax Rate

The ratio of the total taxes paid to the overall income, found by dividing the aggregate amount paid in taxes by the total income.