In 2007, Germany Increased the Value Added Tax (VAT) on Consumption

question 115

Multiple Choice

In 2007, Germany increased the value added tax (VAT) on consumption from 16 percent to 19 percent. The supply-side view, this will

• A) increase the tax wedge and lower the incentive to work.
• B) decrease the tax wedge and lower the incentive to work.
• C) shift the labor supply curve to the right.
• D) increase the incentive to work in order to pay the higher tax.

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Definitions:

Company Newsletter

A regularly distributed publication generally about one main topic that is of interest to its subscribers, designed to keep employees informed about company news and updates.

Annual Review

A yearly evaluation where an employee's performance is assessed by their supervisor, often influencing promotions, pay raises, and professional development.

Individual Performance

Individual performance pertains to the work achievements or outputs of a single employee, evaluated against the organization's standards.

Pay Types

The various forms of remuneration that an employee receives for their work, including salary, wages, bonuses, and commissions.