Corrective Taxes

question 487

Multiple Choice

Corrective taxes

• A)encourage consumers to avoid sales taxes by shopping online.
• B)are frequently used to discourage imports.
• C)are less efficient than direct regulation.
• D)give factory owners an economic incentive to reduce pollution.

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Definitions:

Financial Asset

Any asset that is cash, an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving periodic interest payments and the return of the principal at maturity.

Life Insurance Reserves

Funds that life insurance companies are required to set aside to ensure they can meet future obligations to policyholders.

Pension Reserves

Funds set aside by an organization to meet future pension liabilities for its employees.