If the labor supply curve is very elastic, a tax on labor
a. has a large deadweight loss.
b. raises enough tax revenue to offset the loss in welfare.
c. has a relatively small impact on the number of hours that workers choose to work.
d. results in a large tax burden on the firms that hire labor.
a
Economics
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A profit-maximizing firm will base its supply decisions on its marginal:
a. private cost. b. social cost. c. external cost. d. transactions cost.
Economics
If U.S. prices increase relative to the rest of the world, we would expect imports:
A. to increase and exports to fall. B. to decrease and exports to increase. C. as well as exports to increase. D. as well as exports to decrease.
Economics