A Firm's Obligation to Improve Its Positive Effects on Society

question 21

True/False

A firm's obligation to improve its positive effects on society and reduce its negative effects is called fiscal responsibility.

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Definitions:

Economic Decisions

Choices made by individuals, households, firms, or governments regarding allocation of scarce resources to satisfy various needs and desires.

Tax Revenue

Tax Revenue refers to the income that is gained by governments through taxation, which is then used to fund public services and governmental operations.

Excess Burden

The additional cost to society beyond taxes collected resulting from inefficiencies in market outcomes due to taxation or regulations.

Tax Revenue

Funds accumulated by governments as a result of taxation.