According to the Neoclassical Model, What Would Not Result from the Government

question 16

Multiple Choice

According to the neoclassical model, what would not result from the government levying a tax on firms for each worker the firm lays off?

• A) Firms would be less likely to lay off workers.
• B) Firms would be less likely to hire workers.
• C) Moral hazard would encourage workers to not work as hard as before.
• D) The long-run unemployment rate would decrease.
• E) Unemployed workers would remain unemployed for longer periods of time.

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Definitions:

Pounds

A unit of weight in the imperial and US customary systems, equal to 16 ounces or approximately 0.453592 kilograms.

Follicular Phase

The first phase of the menstrual cycle during which follicles in the ovary mature, ending with ovulation.

Ovulation

The periodic ripening and rupture of a mature graafian follicle and the discharge of the ovum.

Menstruation

The monthly process in females of discharging blood and other materials from the lining of the uterus.