Question :
31) What happens to the acceptable wage rate at each : 1226559
31) What happens to the acceptable wage rate at each level of employment once an income tax is levied on labor income?
A) Nothing, it remains the same.
B) It increases by the amount of the tax that must be paid.
C) Workers and employers split the tax, so the acceptable wage increases by half the tax.
D) Because workers have to work more to make up for the tax, the acceptable wage rate falls by some amount that cannot be determined.
E) Because workers have to work more to make up for the tax, the acceptable wage rate falls by the precise amount of the tax that must be paid.
32) Suppose that, after government imposed an income tax on labor income, the wages paid by employers rose $1.00 and the wages received by employees fell by $0.20. What does that reveal about the elasticities of supply and demand?
A) Supply is more elastic than demand.
B) Demand is more elastic than supply.
C) Supply and demand are equally elastic.
D) Both the supply and demand are inelastic.
E) Nothing because more information is needed to learn about the elasticities.
33) The deadweight loss of a tax on labor income is
A) larger for high-wage workers than for low-wage workers.
B) not part of the total burden of a tax.
C) not a burden workers do not pay that tax.
D) zero for all workers because the supply of labor is perfectly inelastic.
E) zero for low income workers and small for high income workers.
34) A tax on labor income ________ a deadweight loss for low-wage workers and ________ a deadweight loss for high-wage workers.
A) creates; creates
B) creates; does not create
C) does not create; creates
D) does not create; does not creates
E) eliminates; eliminates
35) Taxes on labor income ________ a deadweight loss and ________ the supply of labor.
A) create; decrease
B) do not create; increase
C) create; increase
D) do not create; decrease
E) create; do not change
36) The figure above shows the labor supply and labor demand curves for personal trainers in the state of Florida. The initial equilibrium hourly wage is $10. Suppose the state of Florida institutes an income tax on labor income of $6 an hour in order to buy voting machines for the next election. With the tax in place, the labor supply curve will
A) remain at LS.
B) shift to LS1.
C) shift to LS2.
D) change so that it becomes the same as LD.
E) None of the above answers is correct.
37) The figure above shows the labor supply and labor demand curves for personal trainers in the state of Florida. The initial equilibrium hourly wage is $10. Suppose the state of Florida institutes an income tax on labor income of $6 an hour in order to buy voting machines for the next election. How much of the tax is paid by employers?
A) $0
B) $2
C) $4
D) $6
E) $600
38) The figure above shows the labor supply and labor demand curves for personal trainers in the state of Florida. The initial equilibrium hourly wage is $10. Suppose the state of Florida institutes an income tax on labor income of $6 an hour in order to buy voting machines for the next election. How much of the tax is paid by employees?
A) $0
B) $2
C) $4
D) $6
E) $600
39) The figure above shows the labor supply and labor demand curves for personal trainers in the state of Florida. The initial equilibrium hourly wage is $10. Suppose the state of Florida institutes an income tax on labor income of $6 an hour in order to buy voting machines for the next election. The deadweight loss from this tax equals the region
A) abe.
B) bce.
C) cef.
D) efg.
E) cdf.
