If Income Increases Due to a Decrease in Taxes,then

question 2

Multiple Choice

If income increases due to a decrease in taxes,then

• A) utility will increase because consumers can afford a larger bundle of goods.
• B) utility will fall because consumers will be forced to buy a smaller bundle of goods.
• C) utility will remain constant.
• D) utility will increase because consumers will be forced to buy a smaller bundle of goods.

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Definitions:

Centration

The cognitive tendency in early childhood to focus on one aspect of a situation while neglecting others.

Modelling Clay

A pliable material used in art and education to create three-dimensional objects and forms through shaping and molding.

Conservation

In cognitive development, the understanding that certain properties of objects or substances do not change when their appearance is altered.

Preoperational Stage

The second stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by symbolic thinking, egocentrism, and a lack of logical reasoning.