The MRP of Labor Will Shift to the Left If

question 166

Multiple Choice

The MRP of labor will shift to the left if

• A) labor productivity increases.
• B) labor productivity decreases.
• C) wages increase.
• D) wages decrease.

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Definitions:

Proportional

A concept where elements are in a constant relationship in terms of size, amount, or number relative to a whole.

Regressive

Describing a tax system where the tax rate decreases as the taxpayer’s income increases, placing a larger burden on lower-income individuals.

Taxable Income

Taxable income is the portion of your gross income that's subject to taxes after deductions and exemptions.

Tax Liability

The total amount of tax owed to the government after all deductions, credits, and prepayments have been taken into account.