Income Taxes Create a Wedge Between the Wage Rate Paid

question 50

Multiple Choice

Income taxes create a wedge between the wage rate paid by ________ and received by workers and thereby ________ employment and ________ potential GDP.

• A) firms; raises; increases
• B) firms; raises; decreases
• C) firms; lowers; increases
• D) firms; lowers; decreases
• E) households; lowers; decreases

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Definitions:

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The study of body movements, gestures, and facial expressions as a form of non-verbal communication.

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