Anything that influences a good’s price or the marginal physical product of labor will influence wages.

The total cost curve is the sum of the:

a. total fixed and total variable cost curves. b. total fixed and marginal cost curves. c. marginal cost and total variable cost curves. d. none of these.

Assume that the government proposes a negative income tax that calculates the taxes owed as follows: taxes owed equal 30% of income less $12,000 . A family that earns an income of $40,000 will

a. neither pay taxes nor receive an income subsidy. b. receive an income subsidy of $3,600. c. pay $3,600 in taxes. d. pay $12,000 in taxes.