In Which of the Following Examples Is Excess Burden Not

question 22

Multiple Choice

In which of the following examples is excess burden not present?

• A)Harriet decides to give up her Saturday hours at her law office after income tax rates rise.
• B)Rudolf still smokes three packs a day even after the excise tax on cigarettes rose 10 cents a pack.
• C)Wilma reduced the automatic payroll deduction to her savings account after the tax on interest was imposed.
• D)Harper decided to take a vacation in Bermuda rather than invest in stocks after the tax rate on capital gains was increased.

---

Definitions:

Value Marginal Product

The additional revenue generated by employing one more unit of a factor of production, such as labor or capital.

Skilled Labor

Workers who have specialized training, education, or experience that is valuable for specific jobs, industries, or tasks.

Unskilled Labor

Workforce sector comprising individuals without specialized training or qualifications, often employed in tasks that require manual efforts.

Marginal Productivity

The additional output that is produced by employing one more unit of a factor of production, holding all other factors constant.