Part of the deadweight loss from taxing labor earnings is that people
a. will work more.
b. will be reluctant to hire accountants to file their tax returns.
c. with low tax liabilities will universally be worse off than under some other tax policy.
d. will work less.
d
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A buyer is willing to buy 10 units of a good at a maximum price of $10 per unit. The reservation value of the buyer in this case is:
A) $1. B) $10. C) $20. D) $100.
Which of the following would tend to increase the natural unemployment rate?
a. The creation of national unemployment offices to increase the information about job openings b. Recessionary downturns in the economy that result in massive layoffs of auto workers c. Sociological changes that encourage people to seek employment d. The creation of government subsidies for workers who relocate into areas where new jobs can be found e. Less government money made available as unemployment compensation
When all prices are set equal to marginal costs,
A. consumers buy more than they should. B. consumers will get less utility. C. markets are giving correct signals to consumers. D. producers make excessive profits.
Which of the following regulatory procedures transfers wealth from consumers to producers?
A. Transaction costs B. Efficiency wages C. Import quotas and tariffs D. Deadweight loss