Consider the market for labor, pictured above. Suppose the government imposes a tax of $2000 per...

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Question

Consider the market for labor, pictured above. Suppose the government imposes a tax of $2000 per...

Consider the market for labor, pictured above.

Suppose the government imposes a tax of $2000 per year on firms wishing to hire workers. What is government tax revenue?

business economics

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Answer 1

Answer #1

Ans) government revenue = tax * hired workers

= 2,000*4,000

= 8,000,000

When $ 2,000 tax is imposed, 4,000 workers are hired

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Answer 2

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