Suppose that a new tax on hiring labor is imposed. The demand for labor will ________, and as a result real wages will ________ and employment will ________
A) increase; increase; decrease B) increase; decrease; increase
C) increase; increase; increase D) decrease; decrease; decrease
D
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In the above figure, x is
A) positively related to y and negatively related to z. B) positively related to both y and z. C) negatively related to y and positively related to z. D) negatively related to both y and z.
In a perfectly competitive labor market, if any one firm decreases the amount of labor it employs, the most likely result will be that the
a. market wage rate will rise b. firm's revenue and cost will fall c. market wage will fall d. firm's revenue and cost will rise e. firm's revenue will fall, but its cost will remain unchanged
When a tax is levied on a good,
a. neither buyers nor sellers are made worse off. b. only sellers are made worse off. c. only buyers are made worse off. d. both buyers and sellers are made worse off.
When the tax rate on wages falls (so that the take-home wage or effective wage increases), the budget line
A. shifts out, parallel to the old budget line. B. shifts in, parallel to the old budget line. C. rotates out along the leisure axis. D. rotates in along the leisure axis. E. rotates out along the consumption axis.