When Clarissa Nettles Went to the Grocery Store, She Wrote

question 188

Multiple Choice

When Clarissa Nettles went to the grocery store, she wrote out a check to pay for her purchases. The clerk processed the check electronically and gave her voided check back. The store is using a(n) ____ to process Clarissa's payment.

• A) automated clearinghouse
• B) electronic check conversion
• C) magic check reader
• D) qualified payment system
• E) direct deposit

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Definitions:

Excess Burden

The economic cost to society exceeding the revenue generated by a tax, often resulting from distortions in market behavior.

Economic Decisions

The choices made by individuals, businesses, governments, and other groups that affect the allocation of resources and the distribution of goods and services.

Excess Burdens

The economic inefficiencies that result from implementing a tax, often causing changes in consumption and production behaviors that lead to a loss in social welfare.

Nonneutral Taxes

Taxes that affect economic choices, potentially leading to inefficiencies or changes in market behavior, unlike neutral taxes which do not alter decision-making.