QUESTION 3

1. Which of the following does NOT explain properly about neutrality versus social and political purposes when policy-makers design revenue sources?

   	a.	Revenue sources and the structure of those revenue collection processes are often used to encourage or discourage certain behaviors. The mortgage interest deduction is meant to discourage homeownership.
   	b.	Neutrality may be the more difficult challenge. Almost every revenue source creates opportunity costs.
   	c.	Consumption taxes, if significant enough, can curb demand for products and services being consumed.
   	d.	Policy-makers designing revenue sources often face a tension between the goal of keeping the collection of that revenue neutral in the sense that it does not cause unintended impacts and the desire to use revenue sources as a way to shape behavior that serves social or political purposes.