The Demand Curve for Labor Slopes Downward Because

question 247

Multiple Choice

The demand curve for labor slopes downward because

• A)few workers work at low wages.
• B)capital has been substituted for labor in most industries.
• C)of the diminishing marginal product of labor.
• D)All of the above are true.

---

Definitions:

Average Tax Rates

The ratio of total taxes paid to total income, expressing the fraction of income that is paid in taxes.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxation according to federal or state law.

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, reflecting the percentage of each additional dollar that is paid in tax.

Income Tax Schedule

A chart or table displaying the rates to be applied to income ranges for calculating the amount of income tax due.