A Tax That Does Not Change Consumers' Behavior Creates No

question 85

Multiple Choice

A tax that does not change consumers' behavior creates no

• A)economic burden.
• B)excess burden.
• C)tax revenue.
• D)tax incidence.

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Definitions:

Groupthink

A mode of thinking within a cohesive group whereby pressures for unanimity overwhelm the members’ motivation to realistically appraise alternative courses of action.

Condemning

Expressing strong disapproval or censure of someone or something.

Status Generalization

A process through which differences in members’ status characteristics lead to different performance expectations and, hence, affect patterns of interaction in groups; the tendency for a member’s status inside a group to reflect his or her status outside that group.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.