Which of the Following Factors Will Influence the Size of the Deadweight

question 24

Multiple Choice

Which of the following factors will influence the size of the deadweight loss from the individual income tax?
(i) on average, people will choose to not work as hard as they would if income was not taxed
(ii) on average, people will choose to save less and consume more
(iii) on average, people will choose to reduce their leisure time

• A)(i), (ii) and (iii)
• B)(i) and (ii) only
• C)(i) and (iii) only
• D)(ii) and (iii) only

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Definitions:

Contingency Table

A type of table in a matrix format that displays the (multivariate) frequency distribution of the variables.

Retired People

Individuals who have concluded their working or professional careers and are living in the phase of life beyond employment.

Career

The progression and actions taken by an individual throughout a lifetime, particularly related to their occupation or professional achievements.

Joint Frequency Distribution

A statistical analysis that shows the relationship between two categorical variables by displaying their frequencies of occurrence together.