High Tax Rates Are a Key Indicator of Country Risk

question 10

Multiple Choice

High tax rates are a key indicator of country risk because they

• A)destroy incentives to work,save,and invest
• B)create large government deficits relative to GDP
• C)involve substantial government expenditures yielding low rates of return
• D)corrupt a well-functioning legal system

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Definitions:

Stomach Ulcers

Open sores that develop on the inner lining of the stomach, upper small intestine, or esophagus, often causing pain and discomfort.

Heart Attacks

Medical emergencies characterized by the interruption of blood flow to a part of the heart, causing heart cells to die, also known as myocardial infarction.

AIDS

Acquired Immune Deficiency Syndrome, a life-threatening condition caused by the human immunodeficiency virus (HIV), which severely weakens the immune system.

Malaria

A serious and sometimes life-threatening disease caused by parasites transmitted to humans through the bites of infected mosquitoes.