According to the Lock-In Effect,individuals May

question 18

Multiple Choice

According to the lock-in effect,individuals may:

• A) sell capital assets too quickly in order to avoid the risk that policy makers will increase the capital gains tax rate.
• B) delay selling capital assets to minimize the present discounted value of capital gains tax payments.
• C) sell capital assets just before they die so their heirs will not be forced to pay tax on the gains.
• D) leave cash to their children rather than capital assets in order to minimize the tax complications.

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Definitions:

Conflict Theorists

Sociologists who view social life as a competition, emphasizing the role of coercion and power in producing social order, often focusing on class, race, and gender struggles.

Davis-Moore Thesis

A theory suggesting that social stratification is beneficial to society because it ensures that the most capable individuals occupy the most important roles.

Status Symbols

Material indicators that demonstrate a person’s social and economic position.

Social Mobility

The movement of individuals or groups within or between social strata in a society.