Which of the Following Are Devices That the Government Uses

question 149

Multiple Choice

Which of the following are devices that the government uses to achieve a more efficient allocation of resources in the presence of external benefits?

• A) taxes, private subsidies, and regulation
• B) public provision, taxes, and private subsidies
• C) regulations, public provision, and vouchers
• D) vouchers, public provision, and private subsidies
• E) public provision, taxes, and vouchers

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Definitions:

Taxable Income

The amount of income that is subject to income tax after all deductions, exemptions, and adjustments have been accounted for.

Deductions And Exemptions

Specific amounts that taxpayers can subtract from their gross income to reduce taxable income, potentially lowering their tax liability.

Federal Income Taxes

Taxes levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Adam Smith

An 18th-century Scottish economist and philosopher known as the "father of economics" and author of "The Wealth of Nations," which advocates for the free market and the division of labor.