Answer
Experts are ambivalent to labor taxes and the creation of deadweight loss. The reason for this problem is because they some view labor as inelastic because they feel that it is a necessity for people to work. Others see it as elastic because workers can adjust their hours. The above scenarios would produce a small deadweight loss and large deadweight loss respectively.)
Work Step by Step
The question asks you to understand the concept of labor and how it can be ambivalent. Labor supply has no definite elasticity because people have different views on whether labor is elastic or inelastic. State your opinion and support the idea with examples such as some find work as a necessity while others do not think it is a necessary use of FLEXTIME and such.
