Proponents of Cuts to Income Tax Rates Argue That When

question 5

Multiple Choice

Proponents of cuts to income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that

• A) the opportunity cost of working is negative.
• B) the marginal cost of each additional work hour is not important to most workers.
• C) workers are irrational.
• D) workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work.
• E) workers make decisions based on the social interest.

---

Definitions:

Allison WT

refers to a series of automatic transmissions designed and produced by Allison Transmission for vehicles, especially trucks and buses, known for their reliability and efficiency.

Drop-box

A gearbox that alters the direction of drive, typically used in heavy-duty vehicles to transmit power from the engine to the axles.

Extra-low Range

A gear setting in vehicles offering significantly reduced speed and increased torque for challenging terrain or heavy loads.

Solenoid Coil

An electromagnetic coil used to convert electrical energy into linear motion, often used in valves or as actuating mechanisms.