________ Is the Theory That Holds That There Is No

question 33

Multiple Choice

________ is the theory that holds that there is no universal moral truth and that instead moral principles are dictated by cultural tastes and customs.

• A) Divine Command Theory
• B) Utilitarianism
• C) Relativism
• D) Deontology

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Definitions:

Neutral Taxes

Taxes that do not affect the allocation of resources between different goods or activities in the economy.

Excess Burdens

The economic inefficiencies or losses that result from imposing taxes or government policies.

Principle of Second Best

An economic theory that suggests when a condition for a perfect market cannot be met, the next-best solution may involve violating another condition to improve efficiency.

Distortionary Tax

A tax that causes people to alter their behavior and make different economic decisions than they would in a free market, potentially leading to inefficiency.