Politicians Use Tax Devices to Create Economic Development Incentives

question 107

True/False

Politicians use tax devices to create economic development incentives.

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Definitions:

Substitute Goods

Products or services that can serve as replacements for each other; when the price of one increases, the demand for the alternative typically increases.

Birth Rate

The number of live births per thousand people in a population over a given period of time.

Demand Curve

A graph showing the relationship between the price of a good and the amount of it that consumers are willing to purchase at different prices.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period.