Taxes Adversely Affect the Allocation of Resources in Society Because

question 158

Multiple Choice

Taxes adversely affect the allocation of resources in society because

• A)they do not always fall more heavily on the rich than on the poor.
• B)the taxes collected are not enough to finance government spending.
• C)not everyone pays taxes.
• D)they distort prices and thus distort the decisions of households and firms.

Identify and implement correct page formatting techniques in Word documents.

Utilize specific Word features for text entry and formatting, such as Click and Type, and margin setting.

Apply correct usage of proofreading symbols and techniques for error correction.

Recognize and use different types of indents and their applications in paragraph formatting.

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Definitions:

Shirking

Avoiding or neglecting duties, responsibilities, or work, often covertly, to reduce personal effort while still receiving compensations or benefits.

Working Diligently

Refers to the act of putting consistent and earnest effort into one's tasks or duties.

Moral Hazard

A scenario in which an entity is prone to engage in risky behaviors knowing that another party will shoulder the consequences of such risks.

Adverse Selection

Adverse selection also pertains to the tendency of those in dangerous jobs or high-risk lifestyles to acquire life or health insurance to a greater extent than those with lower-risk profiles, thereby distorting the market.