A Decrease in the Marginal Tax Rate,with the Average Tax

question 64

Multiple Choice

A decrease in the marginal tax rate,with the average tax rate held constant,will

• A)increase the amount of labour supplied at any real wage.
• B)not affect the amount of labour supplied at any real wage.
• C)decrease the amount of labour supplied at any real wage.
• D)increase the amount of labour supplied at any real wage if the average tax rate is above the marginal tax rate,but decrease the amount of labour supplied at any real wage if the average tax rate is below the marginal tax rate.

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change, often used in statistical or mathematical models to represent data or conditions.

Fertility

The natural capability to produce offspring; in human contexts, it often refers to the actual reproduction rates among a population.

Location

A specific place or position where something exists or occurs, often considered in geographical or spatial terms.

Quantity of Land

The total area or amount of productive land available for agricultural or industrial use.