Differences in Abilities Account for Most Income Differentials

question 64

True/False

Differences in abilities account for most income differentials.

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Definitions:

Tax

Compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Deadweight Loss

The reduction in economic productivity resulting from a failure to reach or the impossibility of reaching the market equilibrium for a particular product or service.

Excise Tax

A tax on specific goods or services, often with the goal of discouraging their use or generating revenue.

Supply Curve

A graphical representation of the relationship between the price of a good and the amount of it suppliers are willing to offer for sale, holding other factors constant.