The Tax Wedge Is the Difference Between the

question 98

Multiple Choice

The tax wedge is the difference between the

• A)amount of taxes needed to balance the federal budget and the actual amount of taxes.
• B)amount of taxes needed to pay off the national debt and the actual amount of taxes.
• C)pretax and posttax returns to an economic activity.
• D)nominal and real interest rates.

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Definitions:

Matching Law

When an animal has free access to two different schedules of reinforcement; its response is proportional to the level of reinforcement available on each schedule.

Behavioral Contrast

A phenomenon where the rate of response varies in accordance with a change in the reinforcement provided in an alternate situation.

Matching Law

A principle that states that the proportion of responses directed towards alternatives is equal to the proportion of reinforcements obtained from those alternatives.

Reinforcement

A process in behaviorism where a behavior becomes more likely to occur in the future due to the consequences that follow the behavior.