If the government replaces a lump sum tax with a proportional labor income tax, then
A) employment and output increase.
B) employment increases and output decreases.
C) employment decreases and output increases.
D) employment and output decrease.
D
You might also like to view...
For a given elasticity of supply, the more ________ the demand for the good, the share of the tax paid by the buyers is ________.
A) inelastic; larger B) inelastic; smaller C) elastic; larger D) elastic; smaller E) elastic; the same
Suppose labor supply declined. Would this affect the aggregate demand curve or the aggregate supply curve? What would be the effect on output and the price level?
What will be an ideal response?
Competitive advantage is not synonymous with comparative advantage
Indicate whether the statement is true or false
Standard of living tends to rise in proportion to the growth rate in labor productivity
Indicate whether the statement is true or false