Social Capital Has Downsides

question 10

Multiple Choice

Social capital has downsides.Which of the following is a downside?

• A) High social capital may breed groupthink.
• B) Socialization processes are inexpensive.
• C) Individuals may be more willing to collaborate on joint projects.
• D) Management commitment is easy to obtain.

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Definitions:

Progressive Tax

A tax in which the average tax rate rises with income. People with higher incomes will pay a higher percentage of their income in taxes.

Proportional Tax

A tax in which the average tax rate is the same at all income levels. Everyone pays the same percentage of income in taxes.

Regressive Tax

A tax in which the average tax rate falls with income. People with higher incomes will pay a lower percentage of their income in taxes.

Neutral Tax

A tax system that is designed to have a neutral impact on the economic choices and behaviors of individuals and businesses, not favoring one decision over another.