The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2

-An imposition of tax by the government for funding welfare programs raises the cost of labor to firms as:

Question

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2
 
-An imposition of tax by the government for funding welfare programs raises the cost of labor to firms as:

Quizplus · Accepted Answer

When a tax is imposed, it can reduce the supply of labor as workers may require higher wages to compensate for the tax burden, effectively raising the cost of labor for firms.

The Table Given Below Shows the Absolute Tax Amounts Under