If the Labor Supply Curve Is Nearly Vertical,a Tax on Labor

question 20

Multiple Choice

If the labor supply curve is nearly vertical,a tax on labor

• A)has a large deadweight loss.
• B)raises a small amount of tax revenue.
• C)has little impact on the amount of work that workers are willing to do.
• D)results in a large tax burden on the firms that hire labor.

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Definitions:

Descriptive Research

A method of research that aims to observe and describe characteristics of a subject without influencing it.

Placebo

A substance or treatment with no therapeutic effect, used as a control in testing the efficacy of another substance or treatment.

Clinical Researcher

A professional involved in conducting scientific studies to evaluate and improve healthcare interventions, diagnostics, and treatments.

Efficacy

The ability to produce a desired or intended result, often used in the context of medicine to describe the effectiveness of a treatment.