A Change in Tax Rates ________ Affect Individual's Behavior Regarding

question 150

Multiple Choice

A change in tax rates ________ affect individual's behavior regarding consumption and saving if the change is permanent.

• A) is likely to
• B) will definitely
• C) will negatively
• D) will not

---

Definitions:

Competitive Firm

A company that operates in a market where it has little to no influence over the price of its product, due to the presence of many other firms offering similar products.

Efficient Scale

Efficient scale is the level of production at which a firm can produce its product at the lowest possible average total cost, optimizing resources and operational efficiency.

Government Policy

Strategies and actions taken by the government to influence or to directly manage the economy or certain sectors of it.

Output

The total quantity of goods and services produced by an economic system over a specific time period.