The Table Given Below Shows the Absolute Tax Amounts Under

question 77

Multiple Choice

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2

-​Unemployment compensation programs tend to increase the unemployment rate because:

• A)​they increase the opportunity cost of leisure.
• B)​they provide benefits only to unemployed people under the age of 18.
• C)​they legally fix the minimum wage that has to be paid to labor.
• D)​they allow unemployed persons to become more selective in what job offer they accept.
• E)​they do not provide benefits to labor engaged in the manufacturing sectors of the economy.

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Definitions:

Implicit Costs

The opportunity costs associated with a company's own resources, not directly paid for with cash but are the result of using assets instead of investing them elsewhere.

Economic Profit

The difference between total revenue and the total costs, including both explicit and implicit costs, unlike accounting profit which only considers explicit costs.

Explicit Costs

Direct financial payments made to acquire resources or services for business operations.

Total Economic Costs

The sum of explicit and implicit costs representing the total resources expended in the production of goods or services.