Asked by
Olivier Soto Rodriguez
on Oct 26, 2024
Verified
The government increases the sales tax on all goods but does not change the tax on income earned from labor.What happens?
A) The quantity of labor demanded decreases,but the demand for labor does not shift.
B) The demand for labor decreases.
C) The supply of labor increases.
D) There is no change in the labor market.
Sales Tax
A tax imposed by the government on the sale of goods and services.
Labor Market
The labor market is the marketplace where employers find workers and workers find jobs, dictated by supply and demand for labor.
- Grasp how government policies, like taxation and minimum wage laws, affect labor markets.
Verified Answer
KC
Learning Objectives
- Grasp how government policies, like taxation and minimum wage laws, affect labor markets.