A Tax Elasticity of Supply Equal to

question 114

Multiple Choice

A tax elasticity of supply equal to .21 indicates that

• A) Employers will not hire any workers if tax rates increase.
• B) Employers will hire more workers if tax rates increase.
• C) Workers will not cut back on the number of hours worked if tax rates increase.
• D) Workers will cut back on the number of hours worked if tax rates increase.

---

Definitions:

Insurance Policy

A contract between an insurance provider and an individual or entity, offering financial protection against loss or damage as specified in the policy terms.

Adjusting Journal Entry

A record documented at the closing of an accounting cycle to distribute revenues and expenses to the appropriate period they took place in.

General Ledger

A general ledger is a comprehensive record of a company's financial transactions over the life of the organization, serving as the primary source for preparing financial statements.

Supplies Expense

Costs associated with the consumption of supplies necessary for the daily operations of a business, recognized as an expense in the accounting period in which they are used.