Being Penalized Via Taxes for Making More Money in Dollars

question 67

Multiple Choice

Being penalized via taxes for making more money in dollars even though your purchasing power hasn't changed at all is called:

• A) tax distortion.
• B) shoe-leather costs.
• C) menu costs.
• D) the velocity of inflation.

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Definitions:

Interval

A range of values used to estimate a population parameter, including a measured level of reliability.

Ratio

A quantitative relationship between two numbers showing how many times the first number contains the second or vice versa.

Scales of Measurement

A classification that describes the nature of information within the values assigned to variables in statistical analysis.

Ordinal

Relating to a categorical ranking in which the order of the values is significant, but the difference between them is not uniformly spaced.