We Cannot Be Certain That a General Sales Tax Will

question 30

Multiple Choice

We cannot be certain that a general sales tax will decrease labor supply because _____.

• A)of the effect of lower income on labor supply
• B)of the effect of higher tax revenue on consumption
• C)of the effect of the sales tax on labor supply
• D)we do not know about labor demand

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Definitions:

Exposure Method

A technique used in therapy or research to gradually introduce individuals to a feared stimulus to reduce anxiety.

Effort Justification

A cognitive dissonance resolution strategy where individuals attribute a greater value to an outcome that required a significant effort to achieve.

Court-Ordered Therapy

Therapy mandated by a court of law as part of a sentence or as a condition for probation, typically aimed at rehabilitation.

Minimal Deterrence

A strategy in nuclear policy that advocates for maintaining the smallest possible nuclear arsenal capable of deterring potential adversaries from taking aggressive actions.