When Taxes Alter Individual Behavior as People Attempt to Avoid

question 54

Multiple Choice

When taxes alter individual behavior as people attempt to avoid the tax, efficiency

• A)losses are probable.
• B)gains are possible.
• C)gains are impossible.
• D)losses are impossible.

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Definitions:

Critical Thinking Skill

The ability to think clearly, rationally, and independently, evaluating arguments and solving problems systematically.

Encoding

The initial process of converting information into a form that can be stored in memory.

Retrieval

The process of getting information out of memory storage to be used in response to a cue or question.

Critical Thinking Skill

The ability to analyze information objectively, evaluate arguments and evidence, and make reasoned judgments and decisions.