Author Question: An increase in the income tax rates: a. makes the labor supply curve more inelastic. b. increases ... (Read 64 times)

lindiwe · **on:** Jun 30, 2018

An increase in the income tax rates:
a. makes the labor supply curve more inelastic.
b. increases the opportunity cost of leisure.
c. lowers the opportunity cost of leisure.
d. shifts the labor supply curve to the right.
e. shifts the labor demand curve to the right.

Question 2

When the income elasticity of demand for a good is negative, one can correctly conclude that:
a. the good is a normal good.
b. the good is an inferior good.
c. the good is a substitute.
d. the good is a complement.
e. total revenue will decrease when the price increases.