Suppose That a 3-Year-Old Begins to Ask His Mother to Check

question 10

Multiple Choice

Suppose that a 3-year-old begins to ask his mother to check under the bad for wolves every night at bedtime. Generalizing from information presented in the text, the best response from the parent would be:

• A) to refuse to do this checking, since it will likely lead to the development of a phobia about wolves
• B) to refuse to do this checking, since it is irrational and might lead to the development of defense mechanisms
• C) to refuse to do this checking, but instead to tell the child that there is no way a wolf could get into the house
• D) to check under the bed every night so that the child can better deal with the anxiety he feels about going to bed

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Definitions:

Deadweight Losses

Economic inefficiencies resulting from market distortions, typically leading to a loss of total societal welfare.

Administrative Burdens

The costs and obligations associated with compliance to rules, regulations, and administrative procedures for businesses and individuals.

Tax Evasion

Tax evasion is the illegal practice of not paying taxes by individuals, companies, or trusts, often by making false declarations or no declarations to tax authorities.

Tax Avoidance

The legal use of tax laws to reduce one's tax burden through various means and financial arrangements.