Labor taxes may distort labor markets greatly if
a. labor supply is highly inelastic.
b. many workers choose to work 40 hours per week regardless of their earnings.
c. the number of hours many part-time workers want to work is very sensitive to the wage rate.
d. "underground" workers do not respond to changes in the wages of legal jobs because they prefer not to pay taxes.
c
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Which of the following statements is correct?
a. The distribution of annual income accurately reflects the distribution of living standards. b. Permanent incomes are more equally distributed than annual incomes. c. Transitory changes in income generally have a significant impact on a family's standard of living. d. Annual income is more equally distributed than permanent income.
Refer to the information. The multiplier in this economy is:
A. 4.
B. 5.
C. 2.5.
D. 3.5.