Suppose That One Could Determine the Amount of Income That

Multiple Choice

Suppose that one could determine the amount of income that is pure economic rent.If a law were passed which taxed 50 percent of that rent, what would happen to the amount of work that people perform?

A) It would increase as people seek higher income.
B) It would be unchanged.
C) It would decrease as people suffer a loss of income.
D) It would increase for some and decrease for others.