A Tax Elasticity of Supply Equal to Zero Indicates That

question 97

Multiple Choice

A tax elasticity of supply equal to zero 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 not work at all if tax rates increase.

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Definitions:

Two-Tail

Pertaining to tests of statistical significance that consider both the upper and lower tails of the distribution to check for extreme values in either direction.

SSE

Sum of Squared Errors, a measure of the total deviation of response values from the fit values in statistical models.

SS(Total)

The total sum of squares in an analysis of variance, representing the total variation in the data.

SS(Blocks)

Sum of Squares due to Blocks, a term used in analysis of variance (ANOVA) to quantify variability among different blocks or groups in an experimental design.