Question : 31) Suppose that, after government imposed an income tax labor : 1241617

 

31) 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.

 

32) 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.

33) 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 create

E) eliminates; eliminates

 

34) 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

35) 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.

 

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. How much of the tax is paid by employers?

A) $0

B) $2

C) $4

D) $6

E) $600

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 employees?

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. The deadweight loss from this tax equals the region

A) abe.

B) bce.

C) cef.

D) efg.

E) cdf.

 

39) The above figure shows the labor market for land surveyors. Dave is a land surveyor. What is the tax incidence for this income tax?

A) Though the employer pays some of the tax, Dave pays more of the income tax than his employer.

B) Dave pays the same amount of the income tax as his employer.

C) While Dave pays some of tax, Dave pays less of the income tax than his employer.

D) Dave does not pay any tax.

E) Dave’s employer does not pay any tax.

 

40) The above figure shows the labor market for land surveyors. Dave is a land surveyor. What is the total income tax Dave pays each year?

A) $1,500

B) $4,500

C) $3,000

D) $40,500

E) $45,000

41) The above figure shows the labor market for land surveyors. Dave is a land surveyor. If there was no income tax, Dave would work ________ hours per year and the wage rate would be ________ per hour.

A) 2000; $28

B) 1500; $28

C) 1500; $27

D) 2000; $30

E) 1500; $30

 

42) The above figure shows the labor market for land surveyors. Dave is a land surveyor. With the income tax, Dave works ________ hours per year and his after-tax wage rate is ________ per hour.

A) 2000; $28

B) 1500; $28

C) 2000; $30

D) 1500; $30

E) 1500; $27