Question

Which of the following is true of taxes and subsidies? Group of answer choices Politicians like to levy taxes, but they are reluctant to subsidize activities. Both taxes and subsidies increase the incentive to work and use resources efficiently. If you tax something, you will get less of it; if you subsidize an activity, you will get more of it. If you tax something, you will get more of it; if you subsidize an activity, you will get less of it.

Answer 1

Answer: If you tax something, you will get less of it; if you subsidize an activity, you will get more of it

Explanation:

Taxes are the levy that governments impose on people or firms. Subsidies are financial aid to companies in order to boost production and reduce price.

It should be noted that if you tax something, you will get less of it; if you subsidize an activity, you will get more of it. For example of an income is taxed, the owner of the income will geta lesser amount as tax will be removed.