A Cut in Higher Rate Taxes Has Two Effects

question 15

Multiple Choice

A cut in higher rate taxes has two effects. Which statement is correct?

• A) The substitution and income effect work in the same direction.
• B) The substitution effect increases the opportunity cost of leisure.
• C) The income effect increases the opportunity cost of leisure.
• D) The substitution effect will decrease the opportunity cost of leisure

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Definitions:

Convert

To change data from one format or type to another, such as converting text to number or a file to a different file format.

Split

Split typically refers to dividing data, windows, or objects into separate parts or sections to enhance visibility, manageability, or functionality in software applications or data analysis.

Logical Table

An abstract representation of data organized in rows and columns, used in database and data warehouse design to logically separate data for ease of understanding and management.

Datasheet

A view in database applications that displays data in a table format, where fields are columns and records are rows.