Solved

If the Tax Rate on Income Is Given by T

Question 8

Multiple Choice

If the tax rate on income is given by t and the wage is given by w,what is the slope of the indifference curve at the optimal choice? (Assume that the person is not at a corner of the budget constraint.)


A) the slope of the indifference curve depends on preferences.
B) w - t + 1
C) w(t - 1)
D) w(1 - t)

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents