By Allowing an Income-Tax Deduction for Charitable Contributions, the Government

question 366

Multiple Choice

By allowing an income-tax deduction for charitable contributions, the government

• A)encourages a private solution to a particular positive-externality problem.
• B)discourages a private solution to a particular positive-externality problem.
• C)encourages a private solution to a particular negative-externality problem.
• D)discourages a private solution to a particular negative-externality problem.

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Definitions:

Sinkhole

A depression or hole in the ground caused by the collapse of a surface layer, often due to the dissolution of limestone or other carbonate rock by groundwater.

Dewatered Zone

An area from which significant amounts of water have been removed, often related to geological or artificial processes affecting soil and rock permeability.

Aquifer

An aquifer is an underground layer of water-bearing permeable rock, rock fractures, or unconsolidated materials through which groundwater can move.

Sediments

Particles of soil, sand, or small pieces of rock deposited by water, wind, or ice.