An increase in the marginal income tax rate is likely to:
A. decrease the quantity of labor supplied.
B. increase the quantity of labor supplied.
C. decrease the quantity of labor demanded.
D. increase the quantity of labor demanded.
Answer: A
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Which of the following would help control the future growth of healthcare prices and expenditures?
a. an increase in the share of healthcare costs paid for either directly or from personal medical savings accounts b. the substitution of catastrophic (high deductibility) health insurance for low co-payment plans c. more reliance on expansion in the supply of medical services rather than stimulation of demand d. all of the above
Which of the following goods is most likely to be associated with monopolistic competition?
a. Gasoline b. Milk c. Cookies d. Wheat
Which of the following is not an example of Joel Waldfogel's "Tyranny of the Market"?
a. A daily newspaper tailored to appeal to the majority of readers in an area. b. Nike creating specialized shoes for American Indians' wider feet. c. Pharmaceutical companies spending research and development funds on drugs for common diseases. d. Airlines offering daily direct flights from one large city to another.
(Consider This) According to the piece "Wannamaker's Lament," how have firms responded to the evidence that most advertising campaigns have little impact on sales?
A. Firms have substantially cut their advertising budgets to focus more on product quality. B. Firms have substantially increased their advertising budgets in order to hit the spending threshold necessary to impact sales. C. Firms have substantially cut their advertising budgets to focus more on new product development. D. Firms have conducted a lot of simple experiments to determine what might increase sales.