Which of the Following Is an Effect of an Income

question 78

Multiple Choice

Which of the following is an effect of an income tax

• A)It distorts incentives.
• B)It discourages the poor to save more.
• C)It discourages the rich to save more.
• D)It reduces the administrative burden of taxation.

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Definitions:

Motivation

The psychological forces that influence an individual's direction, intensity, and persistence of voluntary behavior.

Achieving A Goal

The process of setting targets and successfully completing actions or steps to reach the desired outcome.

Definitions of Culture

Various interpretations of culture which may include shared values, traditions, norms, and practices that characterize a group or society.

Stable

A condition or situation that is not likely to change or fail, typically referring to an economy, environment, or structure.