If the Supply of Labour Increases, Then the Equilibrium Wage

question 47

Multiple Choice

If the supply of labour increases, then the equilibrium wage rate ________ and the equilibrium quantity of labour ________.

• A) might rise, fall or not change; increases
• B) falls; increases
• C) rises; increases
• D) falls; does not change
• E) rises; might increase, decrease, or not change

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Definitions:

Wage Tax

A tax imposed directly on workers' incomes, deducted from their gross salaries or wages by the government.

Labor Market

The Labor Market is the marketplace in which employers and employees interact and negotiate employment terms, including wages, hours, and conditions.

Tax Split

division of tax liabilities or the allocation of tax responsibilities among different parties.

Excise Tax Revenue

Government income generated from taxes imposed on specific goods, services, or activities, often aimed at discouraging their use or consumption.