Which of the Following Is Not Correct

question 111

Multiple Choice

Which of the following is not correct?

• A)Some forms of capital income are taxed twice.
• B)The tax code could be rewritten to provide greater incentive to save.
• C)Means-tested benefits reduce the incentive to save.
• D)There is little correlation between national savings rates and measures of economic well-being.

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Definitions:

Delphiniums

Are a genus of flowering plants known for their tall spikes of colorful flowers, commonly used in gardens and floral arrangements.

Perfect Substitutes

Goods or services that can be used in place of one another with no loss of utility or satisfaction.

Income Effect

Refers to adjustments in consumer behavior as a result of changes in purchasing power, influencing the demand for products and services.

Substitution Effect

The change in consumption patterns due to a change in relative prices, where consumers substitute a cheaper alternative for a more expensive good.