Studies of the hours of work of older men have found that the substitution effect dominates the income effect. This suggests that, other things the same,
A) that an increase in non-work expenses will cause older men to work shorter hours.
B) that an increase in the tax rate on income will cause older men to work longer hours.
C) show that tax changes have no effect on their labor supply.
D) that older men will retire earlier in those careers where wages fall more as they get older.
Correct Answer:
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Q3: An Earned Income Tax Credit will
A) increase
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Q7: A decrease in the implicit tax rate
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Q9: If income is held constant and the
Q13: If a worker's desired hours of labor
Q14: Empirical estimates show that for men
A) the
Q19: An increase in the marginal tax rate
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