1.If the estimated wage elasticity of labour demand across the economy was-0.7,the lowering wages would result in

A Higher labour demand and greater aggregate levels of wage earnings

B Higher labour demand and lower aggregate levels of wage earnings

C Lower labour demand and greater aggregate levels of wage earnings

D Lower labour demand and lower aggregate levels of wage earnings

2.According to neo-classical consumer theory, an indirect tax that increases the price of a good is inefficient because:

A It makes consumers worse off

B It is unfair

C It causes some consumers to leave the market

D Its lack of transparency in terms of its real income effect

3.If beef is a normal good and the government taxes beef but then rebates all the tax revenue from this back to the consumer, the quantity demanded of beef will:

A Remain the same

B Increase

C Decrease

D Can't say