How does an increase in the proportional labor income tax modify the consumer's budget constraint?
A) a parallel move up
B) a parallel move down
C) the slope decreases (constraint gets steeper)
D) the slope increases (constraint gets flatter)
D
You might also like to view...
Refer to the figure above. The consumer surplus before the tax is imposed is given by the area ________
A) BCJ B) BAH C) CAE D) JBHF
________ is the benefit that a consumer of a good or service receives
A) Marginal private benefit B) Marginal external benefit C) Marginal social benefit D) Both answers A and B are correct.
Refer to Figure 18-1. Area F + G represents
A) the portion of sales tax revenue borne by consumers. B) the portion of sales tax revenue borne by producers. C) the excess burden of the sales tax. D) sales tax revenue collected by the government.
The expected future money supply does not have an effect on:
A. expected future inflation. B. the current price level. C. the current nominal money supply. D. the future price level.