Exhibit 14-2
-Refer to Exhibit 14-2. To give workers incentives to work more, the government should

Question

Exhibit 14-2 
-Refer to Exhibit 14-2. To give workers incentives to work more, the government should

Quizplus · Accepted Answer

According to Exhibit 14-2, the optimal tax rate for maximizing revenue is between 50 percent and 100 percent. However, at a tax rate of 100 percent, workers have no incentive to work because they will not be able to keep any of their earnings. Therefore, to give workers incentives to work more, the government should decrease the tax rate if it is between 50 percent and 100 percent.

Exhibit 14-2 -Refer to Exhibit 14-2. to Give Workers Incentives to Work