A tax elasticity of supply equal to .21 indicates that
A) Employers will not hire any workers if tax rates increase.
B) Employers will hire more workers if tax rates increase.
C) Workers will not cut back on the number of hours worked if tax rates increase.
D) Workers will cut back on the number of hours worked if tax rates increase.
Correct Answer:
Verified
Q40: Q42: The tax elasticity of supply measures the Q46: Assume that the marginal tax rate is Q46: Exemptions and deductions included in the tax Q48: If an individual is taxed at a Q49: In general,lower marginal tax rates provide incentives Q50: Assume the marginal tax rate is 12 Q51: To make a tax system more progressive,policy Q53: If the marginal tax rate is too Q57: Government attempts to create a more equitable
A)
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