Consuming Fewer Goods Today in Order to Invest Resources in Capital

question 97

Multiple Choice

Consuming fewer goods today in order to invest resources in capital goods can be considered the ________ of economic growth.

• A)opportunity cost
• B)social cost
• C)investment cost
• D)external cost
• E)total cost

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Definitions:

Tax System

The structured method by which governments impose financial charges on citizens, businesses, and property to fund public expenditures.

Efficient Tax System

A tax system designed to collect government revenue with minimal economic distortion and without imposing excessive administration and compliance costs.

Deadweight Losses

Economic inefficiencies that occur when equilibrium in a market is not achieved, often due to government intervention like taxes or subsidies.

Administrative Burdens

The costs and obstacles associated with compliance to governmental policies and regulations.