Assume That Congress Plans to Amend the Federal Individual Income

question 15

Multiple Choice

Assume that Congress plans to amend the federal individual income tax to eliminate the deductions for medical care, educational savings, charitable contributions, and home mortgage interest. Which of the following statements is true? 

• A) The amendment will reduce the complexity of the tax.
• B) The amendment will increase the horizontal equity of the tax.
• C) The amendment will increase the neutrality of the tax.
• D) Both the amendment will reduce the complexity of the tax and will increase the neutrality of the tax.

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Definitions:

Serial Position

The tendency to recall items from the beginning and end of a list better than those in the middle.

Positive Contrast

The phenomenon where the perceived quality or response to a stimulus increases when it is contrasted with a less preferable stimulus.

Negative Contrast

The phenomenon where an organism shows a reduced response to a less favorable or smaller reward after experiencing a more favorable or larger reward.

Fixed-Interval Schedule

A type of reinforcement schedule where the first response is rewarded only after a specified amount of time has elapsed.