What Happens to the Acceptable Wage Rate at Each Level

question 73

Multiple Choice

What happens to the acceptable wage rate at each level of employment once an income tax is levied on labor income?

• A) Nothing, it remains the same.
• B) It increases by the amount of the tax that must be paid.
• C) Workers and employers split the tax, so the acceptable wage increases by half the tax.
• D) Because workers have to work more to make up for the tax, the acceptable wage rate falls by some amount that cannot be determined.
• E) Because workers have to work more to make up for the tax, the acceptable wage rate falls by the precise amount of the tax that must be paid.

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Definitions:

Collective Action

The pursuit of a goal or set of goals by a group of individuals acting together, often in the context of social or political issues.

Resource Mobilization Theory

A theory in social movements proposing that the success of social movements depends on resources (time, money, skills) and the ability to use them.

Contagion Theory

A theory in social psychology that explains how crowd behavior can spread rapidly and uncontrollably, similar to infectious diseases.

Non-routine Collective Action

Coordinated group actions that are often spontaneous or unusual, aiming to address a common issue or goal outside standard practices.