Asked by jayla houser on Jun 30, 2024
Verified
A rational individual gives more to charity when such contributions receive favorable tax treatment.
Rational Individual
Refers to a person who makes choices that maximize their personal benefit or utility, based on their own preferences and available information.
Charity
An act of giving help, typically in the form of money or goods, to those in need.
- Understand the concept of rational self-interest and its implications in economic decision-making.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
True
Explanation :
This is because a rational individual considers the net cost of giving to charity, which is reduced by the tax benefit received. Therefore, favorable tax treatment increases the incentive to give more to charity.
Learning Objectives
- Understand the concept of rational self-interest and its implications in economic decision-making.
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