When the government taxes labor earnings we can expect people to
a. work more so they can keep the same standard of living.
b. work less and enjoy more leisure.
c. quit their present job and find one that pays better.
d. stop working altogether and go on welfare.
b
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The fixed fee a firm is able to charge as part of a two-part pricing strategy is inversely related to the amount of consumer surplus the customer realizes at the profit-maximizing level of output
Indicate whether the statement is true or false
The original maturity on U.S. Treasury bills is between
A) three months and six months. B) one and ten years. C) six months and three years. D) ten and thirty years.
When a 2 percent increase in the price of automobiles generates a greater than 2 percent decrease in quantity demanded, then
a. price elasticity of demand for automobiles is less than one b. total revenue increases c. demand is price inelastic d. demand is unit elastic e. total revenue decreases
Fiscal policy involves which of the following?
A) interest rates B) tax policy C) buying and selling government-agency bonds D) none of the above