When Higher Taxes Discourage Whatever Activity Is Being Taxed,that Is

question 57

Multiple Choice

When higher taxes discourage whatever activity is being taxed,that is called

• A) tax discouragement.
• B) tax abatement.
• C) the multiplier effect.
• D) the negative incentive effect.

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Definitions:

Plastic Bottles

Containers made from polyethylene terephthalate (PET) or other plastics, used to hold liquids or other products.

Wholesale

Pertains to the sale of goods in large quantities at lower prices primarily to retailers or businesses, rather than to ordinary consumers.

Purchased

Purchased refers to the act of buying goods or services in exchange for money.

Beef

A type of meat obtained from cattle.