A Higher Tax Rate on Wages

question 54

Multiple Choice

A higher tax rate on wages

• A)shifts the labor demand curve down to the left.
• B)shifts the labor demand curve up to the right.
• C)does not shift the labor demand or the labor supply curve.
• D)shifts the labor supply curve down to the right.
• E)shifts the labor demand curve up to the right and the labor supply curve up to the left.

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Definitions:

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, in order to keep the account open.

Trader's Margin

The amount of equity contributed by a trader as a percentage of the current market value of the securities held in a trading account.

Established Value

The perceived worth or market value of an asset or company that has been recognized by investors or markets.

CFTC

The Commodity Futures Trading Commission, a United States federal agency that regulates the futures and options markets.