An Increase in the Employment Tax Will Have No Effect

question 5

Multiple Choice

An increase in the employment tax will have no effect on output if the labor supply curve

• A) has a negative slope.
• B) is perfectly vertical.
• C) is perfectly horizontal.
• D) has a positive slope.

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Definitions:

Surface Tension

The elastic tendency of a fluid surface which makes it acquire the least surface area possible, acting like a stretched elastic membrane.

Tracheal Tubes

Tubes that make up part of the respiratory system in insects, allowing gas exchange directly with body cells.

Spiracles

Openings on the surface of some animals, such as insects, spiders, and some fish, which lead to respiratory systems, allowing air to enter the body.

Annelids

A phylum of invertebrate animals characterized by their segmented bodies and include earthworms, leeches, and marine worms.