An Increase in the Tax Rate on Wages Will Likely

question 62

Multiple Choice

An increase in the tax rate on wages will likely result in

• A)both a lower equilibrium real wage and a lower equilibrium level of employment.
• B)no changes in the equilibrium real wage and the equilibrium level of employment.
• C)both a higher equilibrium real wage and a higher equilibrium level of employment.
• D)a higher equilibrium real wage and a lower equilibrium level of employment.
• E)a lower equilibrium real wage and a higher equilibrium level of employment.

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Definitions:

Thematic Apperception Test

A projective psychological test that involves creating stories about ambiguous scenes to uncover underlying thoughts and feelings.

Lack of Persistence

A trait characterized by giving up easily or not continuing in an activity or endeavor despite potential obstacles or challenges.

Low Need for Achievement

A psychological characteristic where an individual has little motivation or desire to achieve success or excel in tasks.

Achievement Motivation

The drive or desire to accomplish goals or meet high standards of performance.