The Draft Is Analogous to a Tax, Where the Amount

question 27

Multiple Choice

The draft is analogous to a tax, where the amount of the tax equals

• A) the discounted present value of the soldier's lost private sector income.
• B) the estimated value of a human life.
• C) the difference between what a soldier would need to be paid to serve voluntarily and his\her actual pay.
• D) The soldier's earnings while enlisted.

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Definitions:

Loss Aversion

The tendency to strongly prefer to avoid losses compared to attempting to acquire gains.

Hindsight Bias

The inclination to see events as having been predictable, after they have already occurred.

Confirmation Bias

The inclination to seek out, understand, prefer, and remember data in a manner that affirms someone's already held beliefs or assumptions.

Selection Bias

A statistical bias in which there is an error in choosing the individuals or groups to participate in a study, leading to results that are not representative of the broader population.