The slope of the production function reflects
a. capital expenditures.
b. government expenditures.
c. Constant returns to labor.
d. Increasing returns to labor.
e. Diminishing returns to labor.
E
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The employment rate is defined as
A) the percentage of the labor force holding employment. B) the percentage of the noninstitutional population either working currently or looking for work. C) the percentage of the noninstitutional population holding employment. D) the percentage of the population currently receiving wages or salaries. E) the percentage of the population currently working and living principally on earnings from labor.
The earned income tax credit (EITC) has been a successful anti-poverty policy by encouraging participation in the workforce.
Answer the following statement true (T) or false (F)
An increase in the marginal tax rate, with the average tax rate held constant, will
A. increase the amount of labor supplied at any real wage. B. not affect the amount of labor supplied at any real wage. C. decrease the amount of labor supplied at any real wage. D. increase the amount of labor supplied at any real wage if the average tax rate is above the marginal tax rate, but decrease the amount of labor supplied at any real wage if the average tax rate is below the marginal tax rate.
An increase in the corporate profits tax will most likely lead to:
a. a decrease in the rental rate of capital in the corporate sector. b. no change in the rental rate of capital in the corporate sector. c. no change in the rental rate of capital in the non-corporate sector. d. an increase in the rental rate of capital in the corporate sector.