According to the Neo-Classical Model, What Would Not Result from the Government

question 22

Multiple Choice

According to the neo-classical model, what would not result from the government levying a tax on firms for each worker the firm lays off?

• A)Firms would be less likely to lay off workers.
• B)Firms would be less likely to hire workers.
• C)Moral hazard would encourage workers to not work as hard as before.
• D)The long-run employment rate would increase.
• E)Unemployed workers would remain unemployed for longer periods of time.

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Definitions:

Intangible Assets

Assets that lack physical substance but hold value for a company, such as brand reputation, intellectual property, and goodwill.

Strategic Tool Kit

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Firm's Prestige

A measure of how highly a company or its products are regarded by customers, partners, and the market in general.

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Different sources from which a business earns money from selling goods or providing services.