Managerial Audits Look at __________ and Their Use

question 30

Multiple Choice

Managerial audits look at __________ and their use.

• A)managerial systems
• B)subordinate systems
• C)manual systems
• D)ethical policies

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Definitions:

Distortionary Tax

A tax that causes people to alter their behavior and make different economic decisions than they would in a free market, potentially leading to inefficiency.

Efficiency

The extent to which resources are utilized optimally to achieve desired outcomes with minimum waste or effort.

Second Best

A concept in economics that suggests if all optimal conditions cannot be satisfied, the second-best option should be pursued.

Distortionary Tax

Taxes that cause people to alter their behavior in a way that distorts the allocation of resources from their most efficient uses.