What Happens to the Acceptable Wage Rate at Each Level

question 73

Multiple Choice

What happens to the acceptable wage rate at each level of employment once an income tax is levied on labor income?

• A) Nothing, it remains the same.
• B) It increases by the amount of the tax that must be paid.
• C) Workers and employers split the tax, so the acceptable wage increases by half the tax.
• D) Because workers have to work more to make up for the tax, the acceptable wage rate falls by some amount that cannot be determined.
• E) Because workers have to work more to make up for the tax, the acceptable wage rate falls by the precise amount of the tax that must be paid.

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A natural electrical discharge of very short duration and high voltage that occurs between a cloud and the ground or within a cloud.

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Having one's interest or curiosity greatly aroused.

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The secretion of saliva in the mouth by the salivary glands, often in response to the sight, smell, or taste of food.

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To draw out or bring forth a response or answer through various means.