Suppose That Taxes on Labor Are Increased by 10 Percent

question 37

Multiple Choice

Suppose that taxes on labor are increased by 10 percent and workers respond by working 2 percent fewer hours.It can be said that

• A)The tax elasticity of the labor supply is 0.2.
• B)The labor supply is elastic.
• C)Employers will face lower unit costs for each worker hired.
• D)The tax elasticity of the labor supply is 5.

---

Definitions:

Depressive

Pertaining to depression, it describes states, characteristics, or individuals showing symptoms of significant sadness, loss of interest in activities, and other related emotional and physical issues.

Binge Eating

A pattern of disordered eating which consists of consuming large quantities of food in a short period of time, often accompanied by feelings of loss of control.

Serotonin

A neurotransmitter in the brain that plays a key role in mood regulation, appetite, and sleep, among other functions.

Thin Ideal

Thin Ideal is a cultural concept that promotes and glorifies thinness as the most desirable body shape, often influencing body image and eating behaviors.