If the tax doubles to $24, the distortion
Suppose the supply of labor is W – t = 10H, where W is the gross wage, t is the tax (in dollars), and H is labor hours. The demand for labor is W = 120 – 2H.
a) declines
b) remains the same
c) doubles
d) triples
e) quadruples
e) quadruples
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Long-term growth in production can be explained by: a. an improvement in the quality of resources available. b. a gradual but consistent rise in the price level
c. a rapid and accelerating increase in the price level. d. a trade surplus that leads to the accumulation of gold. e. the peaks and troughs of economic fluctuations.
If the government is supplying a public good, the efficient quantity is where the:
A. total social benefit equals the cost. B. marginal social benefit is greater than the cost. C. marginal social benefit equals the cost. D. total social benefit outweighs the total cost.
The percentage change in quantity demanded of a good divided by the percentage change in income of the consumers gives the: a. price elasticity of demand of the good. b. price elasticity of supply of the good
c. income elasticity of demand of the good. d. income elasticity of supply of the good.
A country has a population of 10 million people with 1 million unemployed, which is an unemployment rate of 20%. The number of people in the labour force is therefore:
(a) 10 million; (b) 5 million; (c) 1 million; (d) 2 million.