Part of the deadweight loss from taxing labour earnings is that people will work more.

Name: Part of the deadweight loss from taxing labour earnings is that people will work more.
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Question

Quizplus · Accepted Answer

The deadweight loss from taxing labour earnings occurs when people work less as a result of the tax. This is because the tax makes it more costly for individuals to work, reducing their incentive to do so. Therefore, the correct statement is that people will work less, not more.

Part of the Deadweight Loss from Taxing Labour Earnings Is