An imposition of tax by the government for funding welfare programs raises the cost of labor to firms as:
a. the demand for labor increases.
b. the demand for labor decreases.
c. the supply of labor decreases.
d. the supply of labor increases.
e. the opportunity cost of leisure increases.
c
Economics
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The largest component of aggregate expenditure is
a. consumption spending b. government purchases c. net exports d. capital expenditures e. investment spending
Economics
When the Fed sets a money supply target,
a. it expects the economy is heading toward recession b. the demand for money adjusts to the discount rate c. the legal reserve requirement becomes ineffective d. the resulting interest rate is set as well e. the interest rate is determined solely by the position of the demand curve for money
Economics