Entrepreneurs Tend to Take Greater Risks If Low Tax Rates

question 108

Multiple Choice

Entrepreneurs tend to take greater risks if low tax rates offer greater after-tax profit potentials.The government's decision to offer low tax rates to entrepreneurs is:

• A) providing room for an economic expansion.
• B) providing an incentive, in the hopes that more entrepreneurs will take risk and create economic growth.
• C) providing a disincentive, in the hopes that more entrepreneurs will avoid risk and not grow.
• D) providing a disincentive, in the hopes that entrepreneurs will not get into tax default after assuming too much risk.

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Definitions:

Experimental Group

A group of subjects in an experiment who are exposed to the variable under investigation, allowing researchers to assess the effect of this variable.

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment, serving as a comparison to assess the effect of the treatment.

Goals Of Psychology

To describe, explain, predict, and change behavior and mental processes through the application of scientific methods.

Describe

To give a detailed account or picture of a situation, event, pattern, or the like, in words.