1. A tax on labor income A. increases the quantity employed because the demand for labor increases. B. increases the quantity employed because the supply of labor increases. C. decreases the quantity employed because the supply of labor decreases. D. does not change the quantity employed because people must have jobs in order to earn any income. E. decreases the quantity employed because the demand for labor increases. 2. Income taxes are taxes A. paid on personal income and corporate profits. B. that include taxes paid to register a car. C. paid when we make purchases at a store. D. paid only by private individuals who earn income. E. paid only by people on their personal incomes. 3. Income taxes are taxes A. paid on personal income and corporate profits. B. that include taxes paid to register a car. C. paid when we make purchases at a store. D. paid only by private individuals who earn income. E. paid only by people on their personal incomes