Proponents of Cuts to Income Tax Rates Argue That When

Multiple Choice

Proponents of cuts to income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that

A) the opportunity cost of working is negative.
B) the marginal cost of each additional work hour is not important to most workers.
C) workers are irrational.
D) workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work.
E) workers make decisions based on the social interest.