Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

What is one example of how ‘nudge’ theory can be used to prevent tax evasion?

  • Aemploying an extensive administration to ensure detection of evasion
  • Bimposing heavy penalties on those who do evade tax
  • Cproviding information to taxpayers about the undesirable effects of tax evasion
  • Drequiring employers to inform the tax authorities of workers’ pay

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