what asked in Social ScienceEconomics · 2 months ago

Taxes can have all of the following economic effects EXCEPT?

A. Decreasing one’s hourly rate from their employer

B. Changing consumer behavior 

C. Affecting a nation’s productivity

D. Increasing sources of revenue for the government 

4 Answers

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  • kswck2
    Lv 7
    1 month ago

    A. Taxes do not decrease an hourly rate from the Employer. It decrease the take home pay for the employee. 

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  • Anonymous
    2 months ago

    The question states "can", in which case all could actually apply.

    However, the answer is actually C.  

    It is not A because Employer Taxes and Corporate Taxes could require businesses to pay more in taxes.  That could in turn require an employer to cut expenses in different ways.  One of those ways is to reduce labor costs.  Which could include a decrease in hourly wages.

    It is not B, because increased(or decreased) taxes can either encourage or discourage consumers from purchasing items. For example in cases of decreased sales tax it may encourage people ot make a major purchase.  Just as there are cases with increased Sales Tax there is a huge jump in major purchases right before the increase goes into affect.

    It is not D because increased taxes could increase the source of revenue. This is just about the sources. Each new tax could be a new source.

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  • Oiy
    Lv 6
    2 months ago

    A is obvious because it is about wages, not taxes.

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  • JuanB
    Lv 7
    2 months ago

    A. Decreasing one’s hourly rate from their employer

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