If the Labor Supply Curve Is Very Elastic, a Tax

question 201

Multiple Choice

If the labor supply curve is very elastic, a tax on labor

• A)has a large deadweight loss.
• B)raises enough tax revenue to offset the loss in welfare.
• C)has a relatively small impact on the number of hours that workers choose to work.
• D)results in a large tax burden on the firms that hire labor.

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Definitions:

Domestication

The process of adapting animals and plants through selective breeding for use by humans, often to fulfill specific roles or to produce specific products.

Sickle

A hand-held agricultural tool with a curved blade for harvesting or cutting crops.

Plant Domestication

The process by which wild plants have been evolved into crop plants through selective breeding, often leading to plants with traits beneficial to humans.

Seed Germination

The process by which a seed begins to grow and develop into a new plant, triggered by environmental conditions such as water, temperature, and light.