Incentives to Work and Save Are Reduced When

question 3

Multiple Choice

Incentives to work and save are reduced when:

• A)Pigovian taxes are implemented
• B)consumption taxes replace income taxes
• C)income taxes are higher
• D)all of the above are true

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Definitions:

Esteem Needs

A concept from Maslow's hierarchy of needs that refers to the human desire for respect, self-esteem, and recognition from others.

Deficit Principle

The concept that suggests individuals are more motivated by their unmet needs than by desires that have already been satisfied.

Maslow's Theory

A psychological theory proposing a hierarchy of human needs that motivate behavior, starting from basic physiological needs to self-actualization.

Self-Actualization Needs

The apex of Maslow's needs pyramid, which encompasses achieving one's ultimate potential, pursuing self-realization, aiming for personal development, and experiencing life's high points.