An Increase in the Tax Rate on Wages Will Likely

question 62

Multiple Choice

An increase in the tax rate on wages will likely result in

• A)both a lower equilibrium real wage and a lower equilibrium level of employment.
• B)no changes in the equilibrium real wage and the equilibrium level of employment.
• C)both a higher equilibrium real wage and a higher equilibrium level of employment.
• D)a higher equilibrium real wage and a lower equilibrium level of employment.
• E)a lower equilibrium real wage and a higher equilibrium level of employment.

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Definitions:

Locus of Control

A psychological concept referring to individuals’ beliefs about the extent to which the outcomes of their actions are under their own control or are influenced by external factors.

Medical School

An educational institution or part of such an institution that teaches medicine, and awards a professional degree for physicians and surgeons.

Successful

Achieving one's aims or attaining prosperity, fame, or a desired result.

Strategies

Plans or methods devised to achieve a specific goal or solve a problem.