If the Government Cuts the Tax Rate, Workers Get to Keep

question 104

Multiple Choice

If the government cuts the tax rate, workers get to keep

• A) less of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.
• B) less of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.
• C) more of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.
• D) more of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives, leading to inventions and innovations.

World Trade Organization (WTO)

An international organization that regulates and facilitates international trade between nations, aiming to ensure smooth, free, and predictable trade flows.

Global Body

An international organization or entity that operates across multiple countries with a worldwide influence or governance.

Enforce Decisions

The act of implementing or ensuring compliance with decisions made by a person or body with authority.