If a Person Responds to a Tax on Wages by Working

question 15

Multiple Choice

If a person responds to a tax on wages by working the same number of hours,then the:

• A) substitution effect exceeds the income effect.
• B) substitution effect induces the individual to work more.
• C) income effect exceeds the substitution effect.
• D) income effect exactly offsets the substitution effect.

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Definitions:

Conflict Theory

A theory in sociology that views society as an arena of inequality that generates conflict and change, focusing on the disparities between social groups.

Criminality

The condition of participating in unlawful acts or having a propensity to engage in criminal behavior.

Deviance

Behaviors or actions that violate social norms and expectations, often eliciting negative social reactions.

Chambliss

Refers to William J. Chambliss, a sociologist known for his work on the conflict theory and the sociology of law.