The Tax Elasticity of Supply Measures the

question 52

Multiple Choice

The tax elasticity of supply measures the

• A)Response of workers to a change in the tax rate.
• B)Response of workers to a change in prices.
• C)Change in the amount of taxes workers must pay when tax rates change.

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Definitions:

Unconditional Promise

A commitment to act or refrain from acting in a certain manner that does not rely on any conditions or occurrences for its fulfillment.

IOU

An informal document that acknowledges a debt owed by one party to another, but not necessarily specifying repayment terms.

Acknowledging A Debt

An act by which a debtor recognizes their debt and reaffirms their obligation to pay it, often to prevent the statute of limitations from expiring.

Negotiability

The characteristic of a document (such as a check or note) signifying that it can be transferred from one person to another in a manner that the recipient takes it free of most defenses that could be raised by the original maker or drawer.