Taxes Adversely Affect the Allocation of Resources Because

question 197

Multiple Choice

Taxes adversely affect the allocation of resources 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.

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Definitions:

Strike Action

A work stoppage initiated by employees as a form of protest, typically aimed at securing better conditions or pay from their employers.

Negotiations Break Down

This occurs when parties engaged in negotiation are unable to reach an agreement or consensus, leading to an impasse.

Arbitration

The settling of a dispute between labour and management by a third party.

Disciplinary Action

Measures taken by an organization against an employee who has violated company policies or failed to meet expected standards of conduct.