The _______________,Which Was Created Under Tax Relief Act of 1997,allows

question 95

Short Answer

The _______________,which was created under Tax Relief Act of 1997,allows individuals to make non-tax-deductible contributions to a retirement fund that can grow tax free and also pay no taxes on their investment earnings when withdrawn.

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Definitions:

Social Costs

The total cost to society, including both private costs incurred by firms and external costs to individuals not involved in a transaction.

Socially Optimal

A state in which resources are allocated in the most efficient way from a societal perspective, maximising collective welfare or benefit.

Pigovian Tax

A tax or charge levied on the production of a product that generates negative externalities. If set correctly, the tax will precisely offset the overallocation (overproduction) generated by the negative externality.

Clean Up

The process of removing contaminants, waste, or undesirable items from an area, thus restoring it to its original or acceptable condition.