Question 13 The following are true statement regarding the optimal Tax strategie

ID: 1152542 • Letter: Q

Question

Question 13

The following are true statement regarding the optimal Tax strategies from the Government’s perspective, EXCEPT:

Question 13 options:

A. The government can generate total higher tax revenue on markets that are relatively more inelastic in demand, like gasoline and cigarettes.

B. The government should impose a tax per unit that is not too large or too small, in order to maximize total tax revenue.

C. For any market, is easy for the government to impose taxes on producers, because producers can easily pass that to the consumers.

D. Higher tax per unit will always generate higher DWL.

Question 14

The following are correct statements about the Labor Market model, EXCEPT:

Question 14 options:

A. The Demand for labor is mainly determined by the Marginal Productivity of Workers.

B. The Supply of Labor is mainly determined by the Opportunity Cost for Work.

C. An increase in Labor Productivity will likely lead to higher wages but less total labor demand.

D. In equilibrium, the market for labor will attain zero unemployment.

Question 15

The following are correct statements about the Marginal Productivity of Labor (MPL), EXCEPT:

Question 15 options:

A. Is the increase in total production coming from an increase in one unit of labor

B. It is the increase in production per worker generated by technological innovations

C. Is increasing at early stages of production because the beneficial effect of division of labor in early stages of production.

D. It will eventually decline because additional workers will eventually over-saturate the production process.

Question 16

The following factors could lead to a shift up of the Supply Curve for Labor, and consequent increase in market wage, EXCEPT:

Question 16 options:

A. Increase in regulated federal minimum wage.

B. Increase in the value of College Education.

C. Increase in the amount of Unemployment Benefits per worker.

D. An increase in the proportion of elder population ready for retirement.