In the above figure, when the efficient quantity is produced the marginal social benefit of the last magazine is

Income effect of lower wages implies

a. workers prefer leisure to work. b. an increase in the productivity of labor. c. a fall in the demand for labor. d. workers would want to work more.

Part of the deadweight loss from taxing labor earnings is that people

a. will work more. b. will be reluctant to hire accountants to file their tax returns. c. with low tax liabilities will universally be worse off than under some other tax policy. d. will work less.