A decrease in the average tax rate,with the marginal tax rate held constant,will
A) increase the amount of labour supplied at any real wage.
B) not affect the amount of labour supplied at any real wage.
C) decrease the amount of labour supplied at any real wage.
D) increase the amount of labour supplied at any real wage if the average tax rate is above the marginal tax rate,but decrease the amount of labour supplied at any real wage if the average tax rate is below the marginal tax rate.
Correct Answer:
Verified
Q17: The primary surplus is equal to
A)tax revenues
Q18: The type of tax receipts that has
Q19: The largest source of tax receipts for
Q20: Assume the marginal tax rate for income
Q21: Assume that the lost output due to
Q23: The full-employment deficit is
A)the number of jobs
Q24: Government capital consists of
A)money owned by the
Q25: The average tax rate is
A)the fraction of
Q26: Roads and education are examples of
A)government physical
Q27: Taxes distort economic behaviour because
A)they change the
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