As the Tax Wedge Associated with a Given Economic Activity

question 60

Multiple Choice

As the tax wedge associated with a given economic activity gets smaller,we would expect

• A)more of that economic activity to occur.
• B)the distortions caused by taxes on that activity to be greater.
• C)people to engage in less of that particular activity.
• D)no change in the practice of that activity until the tax wedge ultimately disappears.

---

Definitions:

Low Self-Esteem

A condition where an individual has a diminished view of their own worth or value.

Nonverbal Communication

The process of conveying a message without the use of words, through gestures, facial expressions, and body language.

Eyes Pointed Downward

A physical expression or body language often associated with feelings of shame, sadness, submissiveness, or avoiding eye contact.

Paroxetine (Paxil)

An antidepressant medication belonging to the selective serotonin reuptake inhibitor (SSRI) class, used to treat depression and anxiety disorders.