A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of

Question

Quizplus · Accepted Answer

The politician's statement reflects the use of incentives to alter behavior. By taxing behavior they want less of, the government creates a disincentive for individuals to engage in that behavior. Similarly, by subsidizing behavior they want more of, the government creates an incentive for individuals to engage in that behavior. This approach is based on the assumption that individuals respond to incentives, and is commonly used in public policy to achieve certain outcomes.

A Politician Says That the Government Should Tax Behavior They