Author Question: If the marginal tax rate rises above t = 63, tax revenue will decrease because A) workers refuse ... (Read 55 times)

@Brianna17

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If the marginal tax rate rises above t  = 63, tax revenue will decrease because
 
  A) workers refuse to pay taxes since the tax rate is too high.
  B) workers are in the downward-sloping portion of labor supply.
  C) workers reduce working hours in response to the wage loss.
  D) None of the above.

Question 2

Changing the price of a good will usually result in a negative externality.
 
  Indicate whether the statement is true or false



yasmina

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Answer to Question 1

C

Answer to Question 2

False. The effects of a price change are not externalities.



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