Yi and Avik Are Both Economists

question 2

Multiple Choice

Yi and Avik are both economists.Yi thinks that taxing consumption,rather than income,would result in higher household saving because income that is saved would not be taxed.Avik does not think that household saving would respond much to a change in the tax laws.In this example,Yi and Avik

• A)hold different normative views about the tax system.
• B)disagree about the validity of a positive theory.
• C)have a fundamental misunderstanding of the tax system.
• D)More than one of the above is correct.

---

Definitions:

Functional Authority

Functional authority refers to the rights that are granted to individuals or departments to make decisions and issue directives within their specific area of expertise.

Line Managers

Supervisors or managers who are directly responsible for overseeing the work of their subordinates and have a direct impact on day-to-day operations.

Staff Authority

Authority to advise, but not to direct, others.

Progressive Human Resource Management

Innovative and forward-thinking practices in managing an organization's human resources, focusing on employee development and organizational improvement.