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:

Intracellular Pathogens

Microorganisms that invade and replicate within the cells of a host, including viruses, some bacteria, and parasites.

Interleukins

A group of cytokines that were first seen to be expressed by white blood cells (leukocytes) and play an important role in the immune system by regulating cell growth, differentiation, and mobility.

White Blood Cells

Cells of the immune system that defend the body against both infectious disease and foreign materials.

Macrophages

Macrophages are a type of white blood cell part of the immune system that engulfs and digests cellular debris, foreign substances, microbes, and cancer cells in a process called phagocytosis.