The labor supply will generally increase when the income tax rate ________ (if the substitution effect dominates) or transfer payments ________.

The Social Security system was founded

A) during the Civil War, to pay pensions for veterans. B) during the last years of the nineteenth century, as people who had once depended on having a family farm found themselves without a means of support. C) as the United States began to recover from the Great Depression. D) in response to concerns that arose during the high inflation of the 1970s.

Which of the following are determinants of differences in income?

A) age B) marginal productivity C) discrimination D) all of the above