Given a tax on wages, the economic theory of labor markets would
A. predict people work less as a result of the tax.
B. predict people work more as a result of the tax.
C. be unable to predict whether people would work more or less as a result of the tax.
D. predict higher unemployment.
Answer: C
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What will be an ideal response?
One way to place a value on human life is to examine the risks that people voluntarily take and how much they must be paid for taking them. What is the approximate value of a human life according to studies that use this approach?
Opponents of active stabilization policy
a. advocate a monetary policy designed to offset changes in the unemployment rate. b. argue that fiscal policy is unable to change aggregate demand or aggregate supply. c. believe that the political process creates lags in the implementation of fiscal policy. d. None of the above is correct.
An increase in production possibilities is known as
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