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.

---

Definitions:

Injunction

A court order that either prohibits a party from doing a specific act (restraining order) or orders a party to carry out a specific act (mandatory order), typically to prevent harm or to preserve the status quo during litigation.

Civil Lawsuit

A legal action taken by one party against another for the purpose of resolving a dispute or claiming damages.

Deceptive Advertising

The practice of advertising with claims that mislead or could mislead a reasonable consumer.

Industry Guides

Publications or documents issued by regulatory bodies that provide compliance guidelines for specific industries.