Excess burden of tax on labor

Excess burden of tax on labor

U6Q6c.
Using a regular labor supply curve instead of a compensated supply curve to calculate the excess burden of a tax on labor income will:

a. result in an accurate estimate of the excess burden.
b. overestimate the excess burden.
c. underestimate the excess burden.
d. accurately estimate the excess bu…

Excess burden of tax on labor

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