A tax cut that raises the after-tax wage rate will most likely ...

[bucstennis@aim.com]

A tax cut that raises the after-tax wage rate will most likely result in more hours worked if
 
  A) tax rates were low already.
  B) the relevant portion of the labor supply curve is upward sloping.
  C) the relevant portion of the labor supply curve is downward sloping.
  D) workers can be easily fooled.

Question 2

If Bobby thinks that leisure is an inferior good, then his labor supply curve
 
  A) is backward bending.
  B) is always negatively sloped.
  C) is always positively sloped.
  D) does not exist.

[maya.nigrin17@yahoo.com]

Answer to Question 1

B

Answer to Question 2

C