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If a Tax on Labor Is Levied on Workers,the Gross

Question 33

Multiple Choice

If a tax on labor is levied on workers,the gross wage will _______ and the after-tax wage will _______.Assume that supply and demand are neither perfectly elastic nor perfectly inelastic.


A) fall; fall
B) fall; rise
C) rise; rise
D) rise; fall

Correct Answer:

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