1. Comprehensive income: a. is the sum of annual consumption and realized capital gains. b. is the sum of annual consumption and changes in net worth c. excludes corporation income. d. is the sum of annual consumption and net worth 2. A tax on labor income: a. b. c. d. e. results only in an income effect that always decreases hours worked per year. results in a substitution effect that always decreases hours worked per year. results in an income effect that increases hours worked per year if leisure is a normal good. both (a) and (b) booth (b) and (c) 3. Most empirical research indicates that the market supply curve of labor hours by prime-age males is: IS: a. very elastic. b. almost perfectly inelastic. c. always upward sloping. d. perfectly elastic. 4. A flat-rate tax on labor income will: a. b. c. d. always reduce hours worked per year. always increase hours worked per year. either increase or decrease hours worked per year. never have any effect on the amount of leisure hours per year. 5. A tax on labor income will: a. b. c. d. increase the net wage received by workers. decrease the net wage received by workers. cause that net wage received by workers to decline below the gross wage paid by employers. both (b) and (c)