Which of the following statements about the income effect of an income tax rate increase is true?
A. The income effect is theoretically stronger for a family's secondary wage earner than for the family's primary wage earner.
B. Both the income effect is theoretically stronger for low-income taxpayers than for high-income taxpayers and the income effect motivates individuals to find ways to increase their before-tax income are true.
C. The income effect is theoretically stronger for low-income taxpayers than for high-income taxpayers.
D. The income effect motivates individuals to find ways to increase their before-tax income.
Answer: B
You might also like to view...
Cost of goods sold represents an outflow of an asset, inventory, from the sale of products
a. True b. False Indicate whether the statement is true or false
All other variables held constant, a 95% confidence interval will give us a ________ range than will a 99% confidence interval:
A) wider B) narrower C) the same D) more standard E) none of the above
A stock dividend indicates
a. a permanent commitment of assets generated by reinvested earnings. b. an increase to total owners' equity. c. an attempt to shift the control of the company by diluting ownership. d. a transfer of corporate assets to shareholders without using cash. e. a temporary commitment of assets generated by reinvested earnings.
Which of the following is NOT a factor that makes it easier to implement lean in a service delivery system?
a. the extent to which the service delivery system can be standardized b. the frequency at which services are delivered c. the consistency of services that are delivered d. the cost of services that are delivered