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Suppose Last Year Moe Faced a 25% Marginal Tax Rate

Question 54

Multiple Choice

Suppose last year Moe faced a 25% marginal tax rate.This year tax rates have increased and now Moe faces a 30% marginal tax rate.Moe may choose to work more hours this year because:


A) working hours tend to increase over a worker's life in the United States.
B) the opportunity cost of leisure has increased.
C) the opportunity cost of leisure has fallen.
D) he must work more hours to have the same after-tax income this year.

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