Multiple Choice
The incentive effect refers to how much a person will change his or her:
A) hours worked in response to a change in the wage rate.
B) wage rate in response to a change in productivity.
C) quantity demanded of a taxed good in response to a change in the tax rate.
D) wage rate in response to a change in the tax rate on earnings.
Correct Answer:
Verified
Correct Answer:
Verified
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