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A Radically More Progressive Tax System (Which Taxes Workers Earning

Question 55

Multiple Choice

A radically more progressive tax system (which taxes workers earning more at a much higher tax rate) will likely have which of these effects?


A) cause firms to move towards incentive systems that delay wage payments
B) encourage workers to seek employers better matched to their skills
C) cause firms to pay efficiency wages
D) cause firms to pay by salary rather than with piece rates

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