Economic Analysis of the Relationship Between Taxation and Work Reveals

Economic analysis of the relationship between taxation and work reveals that:

A) high taxes may discourage work effort,causing output and income to fall.
B) tax breaks have very little effect on the decision to work,as with the tax holiday experienced in Iceland.
C) when tax rates increase,people react by working longer hours so they will not experience a reduction in after-tax income.
D) workers actually pay very little attention to tax changes,so a tax on earnings is optimal.