The government announces a tax increase on workers' wages to take effect in the future. What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase.
B) Both employment and the real wage rate would decrease.
C) Employment would increase and the real wage would decrease.
D) Employment would decrease and the real wage would increase.
C
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Consumer-oriented exports include which of the following types of products?
A) Wheat, pineapple and soybean oil B) Vegetables, fruit and live cattle C) Beef, ice cream and chicken D) All of the above
Related to the Economics in Practice on page 318: A company selling iced tea discovers that as sugar is added to tea, customers' opinions of the taste of the tea rises for the first few grams of sugar and then drops. Even so, the company chooses not to add the amount sugar that would result in the best-tasting tea. Which of the following would explain why adding less sugar could be a wise decision?
A. Teas with less sugar are more likely to appeal to health-conscious consumers. B. Many products in the cold drink market are sold with substitutes for sugar, such as high fructose corn syrup. C. Manufacturers of tea are required to clearly indicate the amount of sugar in their products. D. The price of sugar added to tea is much less significant than the price of other ingredients, such as tea leaves.