The figure above shows the U.S. supply of labor curve. An increase in the income tax rate leads to a
A) movement downward along the supply of labor curve from a point such as A to a point such as B.
B) leftward shift of the supply of labor curve.
C) rightward shift of the supply of labor curve.
D) movement upward along the supply of labor curve from a point such as C to a point such as B.
E) None of the above answers is correct because there is no change in the supply of labor curve.
B
You might also like to view...
Health insurance markets are likely to attract a disproportionate number of ________ individuals
A) high-risk B) risk-seeking C) low-risk D) risk-averse
The "Great Moderation" refers to ________
A) sharp declines in asset prices B) the long economic expansion of the 1960s C) the mild economic recoveries of the 1970s and early 1980s D) the "oil tax" of the 1970s E) none of the above
The percentage of total output allocated to the production of new plants, equipment, and structures is the
A. Entrepreneurial rate. B. Corporate allocation rate. C. Investment rate. D. Savings rate.
If the price of output increases, the labor ________ curve shifts to the ________.
A. demand; left B. demand; right C. supply; left D. supply; right