Use the Following Figure to Answer the Question : Figure

question 41

Multiple Choice

Use the following figure to answer the question : Figure 18-2 :
shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward.
-In Figure 18-2,as a result of a per-unit tax:

• A)the total wage paid by employers rises,while the net-wage received by employees declines.
• B)the total wage paid by employers declines,while the net-wage received by the employees rises.
• C)the total wage paid by employers declines.
• D)the total wage received by employees decline.

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Definitions:

Music Industry

The sector of the economy focused on the production, distribution, and promotion of music and related services.

Industry Concentration

A measurement of the extent to which a small number of firms dominate the total output, sales, or employment of an industry.

R&D Expenditures

Research and Development Expenditures pertain to the funds allocated by businesses or governments towards the research and development of new products, services, or technologies.

Inverted-U Theory

The idea that, other things equal, R&D expenditures as a percentage of sales rise with industry concentration, reach a peak at a four-firm concentration ratio of about 50 percent, and then fall as the ratio further increases.