An increase in the marginal tax rate on labor income will shift the
a. labor supply curve leftward
b. labor demand curve rightward
c. labor supply curve rightward
d. labor demand curve leftward
Answer: a. labor supply curve leftward
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The concept of inferior goods can be used to show that
A) lower prices signal poorer quality. B) indifference curves can have positive slopes. C) being able to consume more of all goods does not mean that a person will consume more of every good. D) consumers will always buy more of all products if their incomes increase.
The proportion of total direct expenditure made by local governments is called the centralization ratio.
A. True B. False C. Uncertain
Refer to Scenario 7.3. Suppose that the price of labor is $5 and the price of capital is $20. Your firm desires to produce 200 units of output. How much labor will be hired to minimize the costs of producing 200 units of output?
A) 25 B) 50 C) 100 D) 200 E) none of the above
For which of the following goods is the marginal benefit of search likely to be greatest?
a. a pair of shoes b. an automobile c. a jar of honey d. a loaf of bread e. a pair of jeans