Which of the Following Is Not Correct

question 27

Multiple Choice

Which of the following is not correct?

• A)Economists who argue that labor taxes are highly distorting believe that labor supply is fairly elastic.
• B)Economists who argue that labor taxes are not highly distorting believe that labor supply is fairly inelastic.
• C)Economists who argue that labor supply is fairly inelastic cite elderly workers who adjust the date they retire as an example.
• D)Economists who argue that labor supply is fairly elastic cite workers who adjust the hours of overtime that they work as an example.

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Definitions:

Economic Person

A theoretical concept that assumes individuals act rationally and primarily out of self-interest, seeking to maximize their own utility.

Perfect Prototype

An ideal or optimal model of a process, product, or concept that serves as a standard for replicating or comparing similar entities.

Bounded Rationality

A concept that individuals make decisions based on the limited information they have available and their own mental limitations.

Nobel Prize

A set of international awards given annually in several categories including Peace, Literature, and various sciences, recognizing significant contributions to humanity.