Suppose Instead of the Subsidy,the Government Imposes a Tax on Workers

question 5

Multiple Choice

Suppose instead of the subsidy,the government imposes a tax on workers of $4 per hour.What is the new equilibrium wage in the steel industry?

• A) $8
• B) $9
• C) $10
• D) $13
• E) $15

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Definitions:

New York Stock Exchange

One of the largest stock exchanges in the world by market capitalization, located in New York City.

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Durable outerwear made from the tanned hide of animals, primarily used for fashion, protection, and in motorcycle attire.

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represents the total earnings received by consumers, including wages, salaries, benefits, and income from investments, influencing their purchasing power.

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A leguminous plant widely grown for its edible beans which are rich in protein and oil.