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.

Apply knowledge of economic indicators to assess the health and trends in an economy.

Learn how to calculate changes in price levels and inflation rates between different years.

Understand the conceptual distinction between measuring GDP using current-year versus base-year prices.

Understand the conceptual definition and computation of disposable income.

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Definitions:

Private-label Merchandise

Products that are manufactured by one company but branded and sold under another company's brand.

Convenience Stores

Small retail businesses that aim to sell everyday items such as snacks, beverages, and household goods, emphasizing quick service and easy access.

Warehouse Clubs

Large retailers with an irregular assortment, low service levels, and low prices that often require membership for shoppers.

Level of Service

A measure of the quality and efficacy of a service provided to customers, often evaluated based on customer satisfaction and performance metrics.