Question: An individual is known to increase the hours per week worked when non-wage income is decreased. What will happen to the hours worked if
(a) a proportional income tax is levied on wage income?
(b) a proportional income tax is levied on total income?
(c) a proportional tax on wage income is used solely to finance an increase in non-wage income?
Would any of your answers differ if the individual were known to decrease working hours when non-wage income decreased?