What Do Taxes Do

question 17

Multiple Choice

What do taxes do?

• A) Impact the incentive to use resources efficiently
• B) Transfer income from the person or entity paying taxes to ?other individuals or entities
• C) Affect the relative prices of goods, services and resources
• D) All of the above

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Definitions:

Traveler's Checks

Preprinted, fixed-amount checks designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer for this privilege.

Negotiable

Capable of being transferred or exchanged for value by endorsement or delivery.

Countersignature

A second signature added to a document to verify or confirm its authenticity.

Judgment Rate

The interest rate set by law that accrues on judgements entered by courts.